On January 1, 2017 Kaizen Corporation issued a $500 million note that matures in 10 years. The
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On January 1, 2017 Kaizen Corporation issued a $500 million note that matures in 10 years. The note has a stated interest rate of 6 percent. When the note was issued, the market rate was 6 percent. The note pays interest twice per year on June 30 and December 31. At what price was the note issued?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Because the stated interest rate and the market rate are the same the debt is issued at the par value of 500 million Computations Interest 500 million x 6 x 12 15 million Present value 500 million x p ...View the full answer
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Related Book For 
Financial Accounting
ISBN: 978-1259105692
6th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel G Short, George Kanaan, Maureen Sterling
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