suppose your company needs to raise $53 million and you want to issue 20-year bonds for this purpose. assume the required return on your bond issue will be 5.3 percent, and you're evaluating two issue alternatives: a semiannual coupon bond with a coupon rate of 5.3 percent, and a zero coupon bond. your company's tax rate is 21 percent. both bonds will have a par value of $1,000.
How many of the coupons would you need to issue to raise the $53 million?
a-1 number of coupon bonds : $53,000
How many of the zeroes would you need to issue?
a-2 number of zero coupon bonds : $150880.81
In 20 years, what will your company's repayment be if you issue the coupon bonds?
b-1 Coupon bonds repayment : 54,404,500
What if you issue the zeroes?
b-2 Zero coupon bond repayment : 150,880,814
Calculate the aftertax cash flows for the first year of each bond. Do not round intermediate calculations and round your answer to 2 decimal places.
c coupon bonds : outflow : 2,219,110
c zero coupon bonds : inflow : ?
I found everything else but I am struggling to find zero coupon bonds aftertax cash flow
