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Adams Company is planning to ssue $500,000 o 6%, five year bonds payable to borow for a ma or expansion The owner, si on Adams

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Adams Company is planning to ssue $500,000 o 6%, five year bonds payable to borow for a ma or expansion The owner, si on Adams asks you adice on some related matters Read the t Requirement 1. Answer the following questions a. At what type of bond price will Adams Company have total interest axpense equal to the cash interest payments? b. Under which type of bond price will Adams Company's total interest expense be greater than the cash interest payments? C. If the market interest rate is 8%, what type of bond price can Adams Company expect for the bonds? Requirement 2. Compute the price of the bonds if the bonds are issued at 92 The price of the $500,000 bond issued at 92 is $ Choose from any list or enter any number in the input fields and then continue to the next

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