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Bosion Ltd is raising debt capital and has asked you for advice on two options they have identified: 1. A 15-year zero coupon bond. Bosion

Bosion Ltd is raising debt capital and has asked you for advice on two options they have identified: 1. A 15-year zero coupon bond. Bosion Central will receive $10,000,000 today and will repay $18,468,924 in exactly 15 years. 2. A 15-year bank loan with monthly payments. The bank rate on this loan is 4.0% p.a. compounded monthly. Both options have the same upfront fees. Provide a recommendation for Bosion on which option is financially most attractive and an explanation (calculations can be provided in your workings at the end of the test). For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

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