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Dream Inc. needs $ 12 million to build a renewable energy plant. The company plans to draw investments using bonds with a 30-year maturity for
Dream Inc. needs $ 12 million to build a renewable energy plant. The company plans to draw investments using bonds with a 30-year maturity for this purpose. The average yield on the bond market is currently 6%. The company is considering three options for the placement of bonds with $1000 face value: 5.5% semiannual coupon bond, 6.4% annual coupon bond, and a zero-coupon bond. Your company's tax rate is 15%. In 30 years, what will the company's repayment be if you issue the 5.5% semiannual coupon bond? a. 12,000,000 b. 12,330,000 C. 12,660,000 d. 12,834,923 e. 13,246,512 f. 14,825,029 g. 15,872,945
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