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Suppose your company needs to raise $30 milion and you want to issue 20-year bonds for this Assume the required return on your bond issue

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Suppose your company needs to raise $30 milion and you want to issue 20-year bonds for this Assume the required return on your bond issue alternatives: a 7.5 percent semiannual coupon bond and a zero coupon bond. Your company's tax rate is 35 percent. wll be 7.5 percent, and you're evaluating two issue Requirement 1: (a) How many of the coupon bonds would you need to issue to raise the $30 million? (Do not round nlemediate calcula 1,234,567).) tions. Enter the whole number for your answer, not millions (e.g.. Number of coupon bonds (b) How many of the zeroes would you need to issue? (Do not round intermediate calculations. Enter your answer in dollars, not millions (eg. 1,234.567). Round your answer to 2 decimal places (e.g.. 32.16).) Nur umber of zero coupon bon Requirement 2: (a) In 20 years, what will your company's repayment be if you issue the coupon bonds? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g- 1234,567).) Coupon bonds repayment (b) What if you issue the zeroes? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (eg, 1234,567). Round your answer to the nearest whole dollar amount (e-g., 32)) o coupon bonds repayment Requirement 3

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