Question: Assume that Amazon issued a 1 0 - year note on January 1 , 2 0 1 4 with a face value of $ 5

Assume that Amazon issued a 10-year note on January 1,2014 with a face value of $500 million. Further, assume that the stated interest rate on this note was 4% payable annually, but the market interest rate was 5% for companies that matched Amazons risk profile on that date.

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