Larissa and the board want to expand, especially since East Coast Yachts is introducing a solar powered, electric alternative that has no comparison in the marketplace.

Larissa wants to enlist an underwriter to sell $60 million in new 30-year bonds to finance new construction. How many coupon bonds and how many zero-coupon bonds must be issued? What will the principal repayment be if coupon bonds are chosen to be issued?

Which type of bond should be chosen, a coupon bond or a zero-coupon bond, considering sales and production considerations with the new electric, solar yacht?

What could be some advantages and disadvantages of each?