$4$

$10$

points

eBook

Suppose your company needs to raise $$19$ million and you want to issue $15-$year bonds for this purpose. Assume the required return on your bond issue will be $9$ percent, and you're evaluating two issue alternatives: An $9$ percent semiannual coupon bond and a zero coupon bond. Your company's tax rate is $35$ percent.

a$.$ How many of the coupon bonds would you need to issue to raise the $$19$ million? How many of the zeros would you need to issue? $($Do not round intermediate calculations. Round the final answers to the nearest whole number. Enter the answer in dollars.$)$

Number of coupon bonds to sell

Number. of zero coupon bonds to sell

b$.$ In $15$ years, what will be the last cash outflow associated with the coupon bonds? $($Do not round intermediate calculations. Round the final answers to the nearest whole number. Enter the answer in dollars. Omit $ sign in your response.$)$

$\backslash$table$[[$Coupon bonds repayment,$