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Business, 08.11.2019 03:31 jholland03

Suppose your company needs to raise $68 million and you want to issue 20-year bonds for this purpose. assume the required return on your bond issue will be 4.4 percent, and you’re evaluating two issue alternatives: a semiannual coupon bond with a coupon rate of 4.4 percent and a zero coupon bond. your company’s tax rate is 24 percent. both bonds will have a par value of $1,000. how many of the coupon bonds would you need to issue to raise the $68 million?

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Suppose your company needs to raise $68 million and you want to issue 20-year bonds for this purpose...
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