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Citrus Company issued $12,500,000 of 10-year, 7% bonds to

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


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Introduction to Corporate Finance

Introduction to Corporate Finance

3rd edition

Authors: Laurence Booth, Sean Cleary

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