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%.

Calculate Zeroes repayment and cash flow for zeroes.

b-1. In 30 years, what will your companys repayment be if you issue the coupon bonds? (Enter the answer in dollars. Omit $ sign in your response.)

Coupon bonds repayment $ 47700000 Correct.

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 $ ???

Calculate the firms 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 flow of the coupon bonds	$ 1755000 Correct.	Cash outflow Correct
Cash flow for zeroes	$ ???	Cash inflow Correct