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Blossom Inc, manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing
Blossom Inc, manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,021,900 of 10% term corporate bonds on March 1, 2025, due on March 1 . 2040 , with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instruments is 8%
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