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can anyone help me solve this? (if you use a TI-83 plus calculator to help you solve the answer, could you explain where you put
can anyone help me solve this? (if you use a TI-83 plus calculator to help you solve the answer, could you explain where you put the information for that as well)
Suppose your company needs to raise 541.4 million and you wont to issue 25 -year bonds for this purpose. Assume the required return on your bond issue will be 6.4 percent, and you're evaluating two issue aliernatives: a semiannual coupon bond with o coupon rate of 6.4 percent and a zero coupon bond. The tax rote is 24 percent Both bonds will have o par value of $1.000 a. How mony of the coupon bonds would you need to issue to raise the $414 million? How many of the zeroes would you need to issue? Note: Do not round intermediate calculotions. Round your coupon bond answer to the nearest whole number, e.g. 32 and your zero coupon bond answer to 2 decimals, e.9. 3216. b. In 25 years. What will your company's repayment be if you issue the coupon bonds? What if you issue the zeroes? Note: Do not round intermediate calculations and enter your answers in dollars, not millions, rounded to the nearest whole number, e.9. 1,234,567. c. Assume thot the IRS amortization rules opply for the zero coupon bonds. Colculote the firms aftertax cash outhows for the first year under the two dilerent scenorios Note: Input a cash outllow as o negative value and o cash inflow as a positive value. Do not round intermediate calculations and enter your answers in dollars, not millions, rounded to 2 decimat places, e.9, 1.234,567.89 Step by Step Solution
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