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Suppose your company needs to raise dollar 54 million and you want to issue 30-year bonds for this purpose. Assume the required return on your
Suppose your company needs to raise dollar 54 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 semiannual coupon bond with a coupon rate of 6 percent and a zero coupon bond. Your company's tax rate is 35 percent. Both bonds will have a par value of dollar 1,000. How many of the coupon bonds would you need to issue to raise the dollar 54 million? | Number of coupon bonds | 540001 | How many of the zeroes would you need to issue? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) | Number of zero coupon bonds In 30 years, what will your company's repayment be if you issue the coupon bonds? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, 1,234,567.)
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