XYZ Ltd wishes to raise $24 million to fund its investment projects.

d) The company is planning to issue 15-year semi-annual coupon bonds with and a coupon rate of 7% and a face value of $1,000. The nominal annual yield to maturity of investors is expected to be 6.5% per annum. Calculate the required number of semi-annual coupon bonds to raise $24 million. (3 marks)

e) Alternatively, XYZ Ltd is looking into issuing 20-year zero-coupon bonds with a face value of $1,000. The desired effective annual yield to maturity of investors is expected to be 8%. Calculate the required number of zero-coupon bonds to raise $24 million. (2 marks)