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How many bonds would need to issue to raise the money

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Spear-It needs to raise $60 million and wants to issue 20-year zero-coupon bonds for this purpose. Assume the required return on the bond issue will be 5% Spear-It's tax rate is 21%. The par value of each bond is $1000.

Problem 1: How many bonds would you need to issue to raise the money you require?

Reference no: EM132708420

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