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Laurinburg Precision Engineering, Inc. needs to raise $45 million and wants to issue 20 year bonds for this purpose. Assume the required rate of return on Laurinburg's bond issue will be 7 percent and you are evaluating to issue alternatives: A 7 percent semiannual coupon bond and a zero coupon bond. How many of the 7 percent coupon bonds would Laurinburg need to issue to raise $45 million? How many of the zero coupon bonds would Laurinburg need to issue to raise $45 million? In the 20th year, what will Laurinburg's repayment be if it issues 7 percent bonds? In the 20th year, what will Laurinburg's repayment be if it issues zero coupon bonds?

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