Bleay's Squash Ltd. sold $1,000,000 of 4.0%, five-year bonds for $1,022,753 when the market rate of interest was 3.5%. Interest is payable semi-annually. The costs directly associated with issuing the bonds totaled $25,000. What was the effective rate of interest per period on this bond issue?

Answer rating: 100% (QA)

To calculate the effective rate of interest per period on this bond issue we need to consider the bo... View the full answer