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Please show all the work, formulas and steps. Thank you Lululemon needs to raise $150 million and wants to issue 20-year zero-coupon bonds for this
Please show all the work, formulas and steps.
Thank you
Lululemon needs to raise $150 million and wants to issue 20-year zero-coupon bonds for this purpose. Assume the required return on the bond issue will be 6.2% The tax rate is 21%. The par value of each bond is $1000. How many bonds would the company need to issue to raise the money it requires?
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