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Suppose your company needs to raise $35.2 million and you want to issue 22-year bonds for this purpose. Assume the required return on your bond
Suppose your company needs to raise $35.2 million and you want to issue 22-year bonds for this purpose. Assume the required return on your bond issue will be 7.7 percent, and youre evaluating two issue alternatives: a 7.7 percent semiannual coupon bond and a zero coupon bond. Both bonds would have a face value of $1,000. How many of the coupon bonds would you need to issue to raise the $35.2 million? (Previous Question Continued) How many of the zeroes would you need to issue?
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