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Zero rated bonds calculation

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Suppose your company need to raise $35.2 million and you want to issue 22 year bond for this purpose. Assume the required return for your bond will be 7.7 percent and you are evaluating to issue alternative a 7.7 semi annually coupon bond and zero coupon bond your company tax rate is 35%. Both bond...

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  • October 29, 2019
  • 4
  • 2019/2020
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