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Suppose Eagle Endeavors needs to raise $20 million and they wantto issue 15-year bonds to do so. The required return on the issuewill be 6.75% and they are looking at tow different alternatives: a6.75% semiannual coupon bond and a zero coupon bond. The firm's taxrate is 35%. How many coupon bonds will they need to issue to raisethe $20 million? How many zeros will they need to issue?
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