Question
Calvin Manufacturing wants to expand its production capabilities and has decided to purchase a new manufacturing facility.On January 1, 2020, they issued $20,000,000 of 8%
Calvin Manufacturing wants to expand its production capabilities and has decided to purchase a new manufacturing facility.On January 1, 2020, they issued $20,000,000 of 8% bonds.The bonds will be repaid on January 1, 2030.The bonds pay interest quarterly with the first payment due April 1, 2020.The yield rate for similar bonds is 12%.
Calculate the issue price for this bond.
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Management Accounting
Authors: Late RC Sekhar, AV Rajagopalan
1st Edition
195683609, 978-0195683608
