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Suppose your company needs to raise $40.3 milion and you want to issue 30 -year bonds for this purpose. Assume the required return on your

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Suppose your company needs to raise $40.3 milion and you want to issue 30 -year bonds for this purpose. Assume the required return on your bond issue will be 5.3 percent, and you're evaluating two issue alternatives: a semiannual coupon bond with a coupon rate of 5.3 percent and a zero coupon bond. The tax rate is 23 percent. Both bonds will have a par value or $1,000. a. How many of the coupon bonds would you need to issue to raise the $40.3 million? How many of the zeroes would you need to Issue? Note: Do not round Intermediate calculations. Round your coupon bond answer to the nearest whole number, e.g. 32 and your zero coupon bond answer to 2 decimals, e.g., 32.16. b. In 30 years, what will your company's repayment be if you issue the coupon bonds? What if you issue the zeroes? Note: Do not round intermediate caiculations and enter your answers in dollars, not millions, rounded to the nearest whole number, e.9. 1,234,567. c. Assume that the IRS amortization rules apply for the zero coupon bonds. Calcutate the firm's aftertax cash outfows for the first year under the two different scenarios: Note: input a cash outfiow as a negative value and a cash infiow as a positive value. Do not round intermediate calcuiations and enter your answers in dollars, not mililons, rounded to 2 decimal places, e.9. 1,234,567.89

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