Citrus Company issued $12,500,000 of 10-year, 7% bonds to finance a new headquarters. Interest is payable semiannually.
Fantastic news! We've Found the answer you've been seeking!
Question:
Citrus Company issued $12,500,000 of 10-year, 7% bonds to finance a new headquarters. Interest is payable semiannually. The bonds were issued at a market (effective) rate of 9%. What is the present value? Round to the nearest whole dollar.
A. $12,500,000
B. $14,276,550
C. $6,224,125
D. $10,874,008
Related Book For
Introduction to Corporate Finance
ISBN: 9781118300763
3rd edition
Authors: Laurence Booth, Sean Cleary
Posted Date: