The issuance amount per the bond contract is $3,000,000 and the contract carries a stated semi-annual...
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The issuance amount per the bond contract is $3,000,000 and the contract carries a stated semi-annual interest rate of 6% with a term of ten (10) years. However, interest rates increased from the time of the contract was prepared and when the bonds were sold. Investors now require a higher rate of return. The bonds sell in the market at an interest rate of 8%. How much cash was raised from this bond issuance? In other words, at what price did the bond issuance sell? The issuance amount per the bond contract is $3,000,000 and the contract carries a stated semi-annual interest rate of 6% with a term of ten (10) years. However, interest rates increased from the time of the contract was prepared and when the bonds were sold. Investors now require a higher rate of return. The bonds sell in the market at an interest rate of 8%. How much cash was raised from this bond issuance? In other words, at what price did the bond issuance sell?
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Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: ?978-0073379609
15th Edition
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
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