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Suppose your company needs to raise $35.9 million and you want to issue 24-year bonds for this purpose. Assume the required return on your bond

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Suppose your company needs to raise $35.9 million and you want to issue 24-year bonds for this purpose. Assume the required return on your bond issue will be 8.4 percent, and you're evaluating two issue alternatives: an 8.4 percent semiannual coupon bond and a zero coupon bond. Your company's tax rate is 35 percent. Both bonds would have a face value or $1.000. a. How many of the coupon bonds would you need to issue to raise the $35.9 million? Number of coupon bonds 35900 How many of the zeroes would you need to issue? Number of zero coupon bonds b. In 24 years, what will your company's repayment be if you issue the coupon bonds? Coupon bonds repayment $ What if you issue the zeroes? Zero coupon bonds repayment $ c. Assume that the IRS amortization rules apply for the zero coupon bonds. Calculate the firm's aftertax cash outflows for the first year under the two different scenarios

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