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chapter 13 question 2 Krystian Inc. Issued 8-year bonds with a face value of $140,000 and a stated rate of 5% when the market rate
chapter 13 question 2
Krystian Inc. Issued 8-year bonds with a face value of $140,000 and a stated rate of 5% when the market rate was 7%, Interest was paid semi-annually. A. Calculate the cash flows the purchaser of the bonds (the investor) will recelve throughout the bond term. NOTE: The requirement is referring to total interest and principal. x B. Would an investor be willing to pay more or less than face value for this bond? Krystian Inc. Issued 8-year bonds with a face value of $140,000 and a stated rate of 5% when the market rate was 7%, Interest was paid semi-annually. A. Calculate the cash flows the purchaser of the bonds (the investor) will recelve throughout the bond term. NOTE: The requirement is referring to total interest and principal. x B. Would an investor be willing to pay more or less than face value for this bond Step by Step Solution
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