Determining the Proceeds from Bond Issues Madison Corporation is authorized to issue $880,000 of 5-year bonds dated June 30, 2019, with a stated rate of interest of 11%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2019. Required: Determine the proceeds that the company will receive if it sells the following: (Click here to access the tables to use with this exercise and round your answers to two decimal places, if necessary.) 1. The bonds to yield 12% 2. The bonds to yield 10% 847,611.56 X 913,972.53 X Feedback Check My Work You should determine the selling price by using the effective rate to determine the present value of both the future principal and periodic interest payments. When interest is paid semiannually, you should divide the effective rate by the interest periods per year to determine the effective rate per semiannual period (for example, 12% + 2 periods 6% semiannual rate). You should also express the time to maturity in semiannual periods (for example, 5 year bonds x 2 periods 10 semiannual periods). You should use the same number of interest periods for both principal and interest calculations.