Answer d, Problem 8.26Lopez 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.g15.25.)Bond value s970.02b. 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 issued1031c. What will be the price of a zero coupon bond? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and bonds value to 2 decimal places, e.g 15.25.)Price of a zero coupon bond437.08d. 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

Amount to be raised = $1 million Price of Zero Coupon =$ 437 Number of Zero Coupon Bond = $1…

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