Question: A 1 0 - year, 7 % term bond pays interest quarterly. The $ 4 million face amount bond is issued to yield an 8

10 -

year,

7 %

term bond pays interest quarterly. The $

4

million face amount bond is issued to yield an

8 %

return. How much cash will be received upon the issuance of the bond? Show your work and round your answers to the nearest whole dollar. A journal entry is not required.

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