Question: On January 1, Year 2002, Target issued $4,000,000 par value 20-year bonds. The bonds pay interest semiannually on January 1 and July 1 at an

On January 1, Year 2002, Target issued $4,000,000 par value 20-year bonds. The bonds pay interest semiannually on January 1 and July 1 at an annual rate of 8 percent. The bonds were priced to yield (effective rate) 6 percent on the date of issue.

QUESTION: Compute the issue price (cash proceeds) of the bonds on the date of issue.

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