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help Financial Management Dream Inc. needs $ 12 million to build a renewable energy plant. The company plans to draw investments using bonds with a
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Financial Management 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 20 years, what will the company's repayment be if you issue the 6.4% annual coupon bondStep by Step Solution
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