Assume the same information as BEG-13 except that the discount rate is 12% instead of 10%. In

Question:

Assume the same information as BEG-13 except that the is 12% instead of 10%. In this case, how much can Miley expect to receive from the sale of these bonds?
In BEG-13, Miley Railroad Co. is about to issue $300,000 of 10-year bonds paying an 11% interest rate, with interest payable semiannually. The for such securities is 10%. How much can Miley expect to receive for the sale of these bonds?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...