Determining the Proceeds from Bond Issues

Madison Corporation is authorized to issue $870,000 of 5-year bonds dated June 30, 2019, with a stated rate of interest of 9%. 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 10%	$fill in the blank 1
2. The bonds to yield 8%