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A company needs to raise 2 2 million and plans to issue 2 0 - year bonds for this purpose. The required rate of return

A company needs to raise 22 million and plans to issue 20-year bonds for this purpose. The required rate of return is 7.6 percent in the current market. The company has two issue alternatives:a 7.6 percent coupon and a zero coupon bond. The companys tax rate is 34 percent. At bond maturity, how much will the company need to pay its bondholders if it issues the coupon bonds? What if it issues the zeros? Assume semiannual compounding for both bond issuers.

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