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Can-Ed University, which is owned by a group of Canadian universities and colleges, issued bonds to finance the construction of an overseas campus in China.
Can-Ed University, which is owned by a group of Canadian universities and colleges, issued bonds to finance the construction of an overseas campus in China. Can-Ed issued 6% 20-year bonds with a face value of $110,000,000. The bonds will pay interest semi-annually. Calculate the amount of cash Can-Ed will receive if the bonds are sold at a yield rate of: i. 6% (issued at par) ii. 6.5% (issued at 94.448) iii. 5.5% (issued at 106.02)
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