Question: Raise the required amount from a new bond issue. The bond will have a face value of $19,219.86, a coupon rate of 9% per annum,

Raise the required amount from a new bond issue. The bond will have a face value of $19,219.86, a coupon rate of 9% per annum, payable semiannually, and a maturity period of 5 years. The market interest rate is 8% per annum.

Determine the book value of the bond liability associated with Financing Alternative A at the beginning of year 1, and round your final answer to the nearest thousand.

il. Determine the bond interest expense for year 1 in Financing Alternative A. Round yur answers to the nearest thousand. lil. What is the amount of the bond liability at the end of the first year in Financing Alternative A?

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