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= Assume that your company financed its activities by issuing corporate bond with total value is 15% of total company's assets in the 31 December
= Assume that your company financed its activities by issuing corporate bond with total value is 15% of total company's assets in the 31 December 2020 (Total assets = 79,330,209,000) and| you want to issue 10-year bonds for this purpose. Suppose that required return on your bond issue will be 9%, and you are evaluating 2 issue alternatives: a semiannual coupon bond with a coupon rate of 9% and a zero-coupon bond, you company's tax rate is 20%, both bonds will have a par value of VND 100,000. Number of coupon bonds would need to issue to raise the capital needed: 118,995 Number of zero-coupon bonds would need to issue: 286,983 In the 10 years, what will your company's repayment be if you issue the coupon bonds? What if you issue the zeroes? Why would you ever want to issue the zeroes? To answer, calculate the firm's after-tax cash outflows for the first year under the two different scenarios. Assume the IRS amortization rules apply for the zero-coupon bonds
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