Question

On July 15, 2018, Capstick Inc. will be making a $40,000,000 bond issue to public investors. The bond matures in seven years on July 14, 2025, has a coupon rate of 4 percent, and pays interest annually on July 14. Determine how much Capstick will receive in proceeds from its bond if the effective interest rate when the bond is issued is
a. 3 percent
b. 4 percent
c. 5 percent



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  • CreatedFebruary 26, 2015
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