Company repayment be if you issue the coupon bonds

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Reference no: EM131567965

Suppose your company needs to raise $30 million and you want to issues 30-year bonds. Assume the required return is 8% and you're evaluating two alternatives: An 8% percent semiannual coupon and a zero coupon bond. Tax rate is 35%. How many coupon bonds would I need to issue to raise $30 million? How many of the zero? In 30 years, what will your company's repayment be if you issue the coupon bonds? What if you issue the zeroes?

Reference no: EM131567965

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