XYZ Ltd wishes to raise $20 million to fund its investment projects.

d) The company is planning to issue 10-year semi-annual coupon bonds with a coupon rate of 6% and a face value of $1,000. The effective annual yield to maturity of investors is expected to be 8% per annum. Calculate the required number (expressed in integer) of semi-annual coupon bonds to raise $20 million. (3 marks)

e) Alternatively, XYZ Ltd is looking into issuing 15-year zero-coupon bonds with a face value of $1,000. The desired nominal yield to maturity of investors is expected to be 8% compounded semi-annually. Calculate the required number (expressed in integer) of zero-coupon bonds to raise $20 million. (2 marks)