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Your firm wishes to raise 10,000,000 by either issuing regular coupon bonds or issuing zero coupon bonds. The regular coupon bonds will have a 10%
Your firm wishes to raise 10,000,000 by either issuing regular coupon bonds or issuing zero coupon bonds. The regular coupon bonds will have a 10% coupon rate. Both issues are expected to mature in 12 years,pay annual, and have a yield of 6%.
1.If they opted to go with regular bonds, what is the firms total repayment in year 12?
2.If they opted to go with zero coupon bonds, what is the firms total repayment in year 12?
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