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imagination dragons needs to raise funds to finance a plant expansion, and it has decided to issue 30-year zero coupon bonds with a par value
imagination dragons needs to raise funds to finance a plant expansion, and it has decided to issue 30-year zero coupon bonds with a par value of 1000 each to raise money. The required return on bonds will be 9 percent. Assume semiannual compounding periods. A) what will these bonds sell for at issuance? B) Using the IRS amortization rule, what interest deduction can the company take on these bonds in the first year? In the last year? C) Repeat part b using the straight line method for the interest deduction
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