Lopez Information Systems is planning to issue 10-year bonds. The going market yield for such bonds is 8.45 percent. Assume that coupon payments will be made semiannually. The firm is trying to decide between issuing an 8 percent coupon bond or a zero coupon bond. The company needs to raise $1 million. a. What will be the price of an 8 percent coupon bond? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and bonds value to 2 decimal places, e.g 15.25.) Bond value 970.02 b. How many 8 percent coupon bonds would have to be issued? (Round number of bonds to the nearest whole number, e.g 5,275.) Number of bonds issued 1031 c. What will be the price of a zero coupon bond? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and bonds value 2 decimal places, e.g 15.25.) Price of a zero coupon bond 437.08 d. How many zero coupon bonds will have to be issued? (Round number of bonds to the nearest whole number, e.g 5,275.) Number of bonds issued

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A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.