Question: Assume the same information as in BED-9 except that the discount rate is 10% instead of 8%. In this case, how much can Chicago expect

Assume the same information as in BED-9 except that the discount rate is 10% instead of 8%. In this case, how much can Chicago expect to receive from the sale of these bonds?

Data From Brief Exercise 9D:

Chicago Railroad Co. is about to issue $200,000 of 10-year bonds paying a 10% interest rate, with interest payable semiannually. The discount rate for such securities is 8%. How much can Chicago expect to receive for the sale of these bonds?

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