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Suppose your company needs to raise $35 million and you want to issue 20 year bonds for this purpose. Assume the required return on your
Suppose your company needs to raise $35 million and you want to issue 20 year bonds for this purpose. Assume the required return on your bond issue will be 6.8%, and you're evaluating two-issue alternatives: a 6.8% semiannual coupon bond and a zero-coupon bond. Your company's tax rate is 35% How many of the coupon bonds would you need to issue to raise the 35 Million? Please show answer in excel and explain
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