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Business, 24.10.2019 06:43 mckenzieg

Your firm will issue 10-year bonds to raise $10 million. you will either (a) issue regular coupon bonds which have a 6% coupon rate and make annual payments or (b) issue zero coupon bonds which make annual payments. both options will have a ytm of 8%. what is your firm’s total repayment 10 years from now if they went with option (b)?

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