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ANY IDEA ON c. ? Bond interest payments before and after taxes Your company needs to raise $75 million, and you want to issue 10-year

image text in transcribedANY IDEA ON c. ?

Bond interest payments before and after taxes Your company needs to raise $75 million, and you want to issue 10-year annual coupon bonds to raise this capital. Assume that the bond has a $1,000-par-value. Suppose the market requires the return of your company's bonds to be 6%, and you decide to issue them at par. a. How many bonds would you need to issue? b. What will be the total expense to your company at the time when the bonds mature in year 10? c. Suppose your company is in the 35% tax bracket. What is your company's net after-tax interest cost associated with this bond issue at the time when the bonds mature in year 10? a. The number of bonds that need to be issued is 75000. (Round to the nearest whole number.) b. The total expense to the company at the time when the bonds mature in year 10 is $ 79500000. (Round to the nearest dollar.) c. Assuming your company is in the 35% tax bracket, the company's net after-tax interest cost associated with this bond issue at the time when the bonds mature in year 10 is $ (Round to the nearest dollar.)

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