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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.
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 youre evaluating two issue alternatives: a 6% annual coupon bond and a zero-coupon bond. Your companys tax rate is 35%.
b-2. What if you issue the zeroes?
Zeroes repayment ..................?
b3
Cash flow for zeroes | $ | ? Cash inflow |
Please help me to find b2 and b3.
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