In October 2012, French real estate company Foncire des Rgions issued bonds with a total face value
Question:
In October 2012, French real estate company Foncière des Régions issued bonds with a total face value of \(€ 500\) million. The bond proceeds were \(€ 504.087\) million. The 2012 annual report has the following note:
a. Determine the annual interest payments. (Hint: Nominal rate of \(3.875 \%\) is the coupon or face rate of interest.)
b. Assume the bonds are due in 5.25 years (October 2012 till January 2018). Determine the effective interest rate.
c. What amount of interest expense does the company report related to these bonds for the first full year after they are issued?
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Related Book For 
Financial And Managerial Accounting For MBAs
ISBN: 9781618533593
6th Edition
Authors: Peter D. Easton
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