The Longo Corporation issued ($60) million maturity value in notes, De carrying a coupon rate of six percent, with interest paid semiannually. At the time

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The Longo Corporation issued \($60\) million maturity value in notes, De carrying a coupon rate of six percent, with interest paid semiannually. At the time of the note issue, equivalent Sa risk-rated debt instruments carried yield rates of eight percent. The notes matured in five years.

Calculate the proceeds that Longo Corporation will receive from the sale of the notes. How will the notes be disclosed on Longo’s balance sheet immediately following the sale? Calculate the interest expense for Longo Corporation for the first year that the notes are outstanding. Calculate the balance sheet value of the notes at the end of the first year.