Suppose that Amazon wants to borrow $$8$ billion $($see the article here$)$ and to repay it in ten years. It intends to borrow, on Jan $12023,$ by issuing one of the following bonds: i$)$ Ten year maturity, $7\%$ annual coupon, paid semi$-$annually on June $30$th and Dec $31$st$.$ ii$)$ Ten year maturity zero coupon bonds iii$)$ Ten year maturity, $12\%$ annual coupon, paid semi$-$annually as above A$)$ For each of the three choices, how many bonds will it have to issue to raise the $$8$ billion it needs? Assume that each bond has a face value of $$1,000,$ and that the cost of debt for Amazon is $7\%$ per year, APR. Bond $1$: FV$=1000,$ PMT$=35,$ r $=3\mathrm{.}5\%,$ n$=20$ semiannual periods, PV$=$$$1000$ Bond $2$: FV$=1000,$ PMT$=0,$ r $=3\mathrm{.}5\%,$ n$=20$ semiannual periods, PV$=$$$502\mathrm{.}57$ Bond $3$: FV$=1000,$ PMT$=60,$ r $=3\mathrm{.}5\%,$ n$=20$ semiannual periods, PV$=$$$1355\mathrm{.}31$ So$,$ # bonds needed $=8,000,000,000/$Price per bond $($PV$),$ and will be $8$ million, $15,918,180,$ and $5,902,708,$ respectively.