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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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