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Check my work Suppose your company needs to raise $ 1 7 million and you want to issue 2 0 - year bonds for this
Check my work
Suppose your company needs to raise $ million and you want to issue year bonds for this purpose. Assume the required return on your bond issue will be percent, and you're evaluating two issue alternatives: An percent semiannual coupon bond and a zero coupon bond. Your company's tax rate is percent.
a How many of the coupon bonds would you need to issue to raise the $ million? How many of the zeros would you need to issue?
Do not round intermediate calculations. Round the final answers to the nearest whole number. Enter the answer in dollars.
Number of coupon bonds to sell
eBook Number of zero coupon bonds to sell
b In years, what will be the last cash outflow associated with the coupon bonds? Do not round intermediate calculations. Round the final answers to the nearest whole number. Enter the answer in dollars. Omit $ sign in your response.
Coupon bonds repayment
Zero coupon bonds repayment
$
$
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