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Suppose your company needs to raise $ 4 5 million and you want to issue 3 0 - year bonds for this purpose. Assume the
Suppose your company needs to raise $ million and you want to issue year bonds for this purpose. Assume the required return on your bond issue kwill be percent, and you're evaluating two issue alternatives: A semiannual coupon bond with a percent coupon rate and a zero coupon bond. Your company's tax rate is percent. A How many of the coupon bonds would you need to issue to raise the $ million? How many of the zeroes would you need to issue? B In years, what will your company's repayment be if you issue the coupon bonds? What if you issue the zeroes?
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