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missing inflow FINANCE HW 7.3-6 Question 8 (of 10 10,.00 points Suppose your compeny needs to raise $45 million and you want to issue 30-year
missing inflow
FINANCE HW 7.3-6 Question 8 (of 10 10,.00 points Suppose your compeny needs to raise $45 million and you want to issue 30-year bonds for this purpose. Assume the required return on your bond issue will br 6 percent and yaurn evaluating two issue altematives: A 6 parcent semiannual coupon bond and a zero coupon bond. Your company's tax rate is 35 percent. a-1. Haw many af the coupan bands would ynu naed to issuc to raisa tha 545 million? Number of coupon bonds 5000 a-2. How many of the zeroes would you need to issue? (Round your answer to 2 decimal places. (e.g 32.16)) b.1. In 30 years, what will your company's rapayment be If you issue the coupon bonds? Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) bonds repayment S 46350000 b-2. What if you issus the zeres (Enter your answer in dollars, not millions of dollars, i.a. 1.234,567.) Zerces repayment millions of dollars, l.e. 1,234,567 265122000 . Calculate the aftartax cash flows for tha first year for each band (Enter your answer in dollars, not Outow 7 Caupon bonds Zaro coupon bonds Inflo 1755000 ReferenceseBook & Resources Worksheet Learning Objective. 07-02 Bond values and yields and why they fluctuale. Difficulty: Intermediate Section: 7 4 Some Diferent Types of BondsStep by Step Solution
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