On December 1, 2017, Exlou Inc. will be making a $15,000,000 bond issue to public investors. The

Question:

On December 1, 2017, Exlou Inc. will be making a $15,000,000 bond issue to public investors. The bond matures in 12 years on November 30, 2029 and pays interest annually on November 30. The effective interest rate on December 1, 2017 is expected to be 9 percent. How much will Exlou receive in proceeds from its bond if the rate on the bond is
a. 10 percent?
b. 9 percent?
c. 8 percent?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...