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Suppose your company needs to raise $45 million and you want to issue 30-year bonds for this purpose. Assume the required return on your bond
Suppose your company needs to raise $45 million and you want to issue 30-year bonds for this purpose. Assume the required return on your bond issue will be 6 percent, and you're evaluating two issue alternatives: a 6 percent annual coupon bond and a zero-coupon bond. Your company's tax rate is 35 percent. 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 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.) Coupon bonds repayment issue the zeroes? (Enter the answer in dollars. Round the final answer to 2 decimall places.) Zeroes repayment
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