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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 10 years, what will the company's repayment be if you issue the 5.5% semiannual coupon bond? a. 13,246,512 b. 12,660,000 C. 12,330,000 d. 12,000,000 e. 660,000 f. 330,000 g. 768,000 h. 354,530
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