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Suppose your company needs to raise $42 million 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 $42 million and you want to issue 30 -year bonds for this purpose. Assume the required return on your bond issue will be 7.1 percent, and you're evaluating two issue altematives; a semiannual coupon bond with a coupon rate of 7.1 percent and a zero coupon bond. The tax rate is 25 percent. Both bonds will have a par value of $1,000. a. How many of the coupon bonds would you need to issue to raise the $42 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 calculations and enter your answers in doliars, 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. Calculate 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 inflow as a positive value. Do not round intermediate calculations and enter your answers in dollars, not millions, rounded to 2 decimal places, e.9., 1,234,567.89

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