xx company needs to raise $90 million and wants to issue 15-year zero-coupon bonds for this purpose.Assume the required return on the bond issue will be 5%.Spear-It's tax rate is 21%.The par value of each bond is $1000.

1) How many bonds would you need to issue to raise the money you require?

2) In 15-years, what will your repayment be if you issue these bonds?

3) Calculate the firm's after-tax cash outflows for the first year.Assume the IRS amortization rules apply for the zero coupon bonds.