Question: Sharp, Inc. needs to raise $20 million and is considering issuing: a) A 2 percent coupon 5-year bond, with a face and reimburse value of

Sharp, Inc. needs to raise $20 million and is considering issuing: a) A 2 percent coupon 5-year bond, with a face and reimburse value of $1 000 b) A 5-year zero-coupon bond, with a face and reimburse value of $1 000 Knowing that presently, Sharp, Inc. Yield-to-Maturity (YTM) for similar bond is 4%, how many of the coupon bonds would you need to issue to raise the $20 million? And zero-coupon bonds?

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