Ask Question
23 March, 02:05

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?

+5
Answers (1)
  1. 23 March, 04:40
    0
    you would need 68000 of the coupon bonds to issue to raise the $68 million.

    Explanation:

    price of the coupon bond = $1000

    number of coupon bond = $68 million/1000

    = 68000

    Therefore, you would need 68000 of the coupon bonds to issue to raise the $68 million.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “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 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers