Question
A company issued 4%, 20-year bonds with a face amount of $60 million. The market yield for bonds of similar risk and maturity is 6%.
A company issued 4%, 20-year bonds with a face amount of $60 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. Calculate the issue price of the bonds. Show your work and rounding may impact results.
A) $60,000,000
B) $46,131,324
C) $18,393,600
D) None of the above
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Financial Accounting
Authors: LibbyShort
7th Edition
78111021, 978-0078111020
