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

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

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$

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$

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 flow of the coupon bonds$

(Click to select)Cash inflowCash outflowCash flow for zeroes$(Click to select)Cash inflowCash outflow