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Suppose your company needs to raise $45 million and you want to issue 30-year bonds for this purpose with a par value amount of $1,000.

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Suppose your company needs to raise $45 million and you want to issue 30-year bonds for this purpose with a par value amount of $1,000. Assume the required return on your bond issue will be 6%, and you're evaluating two issue alternatives: a 6% annual coupon bond and a zero-coupon bond. Your company's tax rate is 35%. a-1. How many of the coupon bonds would you need to issue to raise the $45 million? Number of coupon bonds 45000 a-2. How many of the zeroes would you need to issue? (Round the intermediate calculations and the final answer to 2 decimal places.) Number of zero coupon bonds 258457 b-1. In 30 years, what will your company's repayment be if you issue the coupon bonds? (Enter the answer in dollars. Omit $ sign in your response.) b-1. In 30 years, what will your company's repayment be if you issue the coupon bonds? (Enter the answer in dollars. Omit $ sign in your response.) Coupon bonds repayment $ 47700000 b-2. What if you issue the zeroes? (Enter the answer in dollars. Round the intermediate calculations and the final answer to 2 decimal places. Omit $ sign in your response.) Zeroes repayment $ 258457000 c. Calculate the firm's aftertax cash flows for the first year under the two different scenarios. (Round the intermediate calculations and the final answers to 2 decimal places. Omit $ sign in your response.) Cash outflow Cash flow of the coupon bonds Cash flow for zeroes $ 1755000 $ 945000 Cash inflow

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