Suppose the company you work for, NewChallenge Ltd, needs to raise $25 million and the company plans to issue 30-year bonds for this purpose. Assume the required return on the bond issue will be 8.25%, and you have been asked to evaluate two issue alternatives: an 8.25% semi-annual coupon bond and a zero-coupon semi-annual bond. Your companys tax rate is 33%. How many of the coupon bonds would you need to issue to raise the $25 million? How many of the zeroes would you need to issue?

A.28,000 coupon bonds; 282,645 zero coupon bonds.

B.15,000 coupon bonds; 282,645 zero coupon bonds.

C.25,000 coupon bonds; 123,093 zero coupon bonds.

D.25,000 coupon bonds; 282,645 zero coupon bonds.

E.25,000 coupon bonds; 482,645 zero coupon bonds.