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Suppose your firm needs to raise $10 million and you wish to issue 20 year zero-coupon bonds (each with a face value of $1000) for
Suppose your firm needs to raise $10 million and you wish to issue 20 year zero-coupon bonds (each with a face value of $1000) for this purpose. Assume the required return for these bonds will be 10%. Ignore any issue costs paid to bond dealers. Calculate how many of the zero-coupon bonds you would need to issue to raise the $10 million.
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