PROBLEM: 30 year, 30% Coupon rate, 30 million, RD=8%, and TC =30%

1. What is issuing price?

.2 To get $10 million

. 3 Annual Tax Saving on interest

. 4 Captial Gains tax at maturity

I got this answer!

1. have N=30 I =8 PV=? Pmt= 300 FV =1000

So PV = 3476.71

2. 30 million/3476.71 = 8628.85 bonds

3. .03 X 300 x 8628.85 = 776,596.50

4. .03 (3476.71-300) x 8628.85 = 8223406.22

so N=30 I=8 PV ? PMT=776596.50 FV=8,223,406.22

So PV=9,559,975.32

So is this all correct!!