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4. On 1/1/2018, Sunshine Corp. issued a bond with the following information. Principal: $1,000,000 Stated interest rate: 6% Maturity: 5 years Market interest rate at
4. On 1/1/2018, Sunshine Corp. issued a bond with the following information. Principal: $1,000,000 Stated interest rate: 6% Maturity: 5 years Market interest rate at issuance: 8%. Sunshine Corp. makes semi-annual coupon payments on June 30 and Dec. 31 . 1) How much cash did Sunshine Corp, receive from the bond issuance? 2) Calculate the interest expense and net book value of the bond at the end of year 2018. Interest expense for the first half of year 2018: Interest expense for the second half of year 2018: NBV at the end of 2018: 1
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