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Please use Excel Suppose your company needs to raise $37 million and you want to issue 30-year bonds for this purpose. Assume the required return
Please use Excel
Suppose your company needs to raise $37 million and you want to issue 30-year bonds for this purpose. Assume the required return on your bond issue will be 6 percent, and youre evaluating two issue alternatives: A semiannual coupon bond with a 6 percent coupon rate and a zero coupon bond. Your companys tax rate is 35 percent. a. How many of the coupon bonds would you need to issue to raise the $37 million? b. How many of the zeroes would you need to issue?
Assume face value is $1000
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