General Electric Company issued $1,000,000 of 10-year bonds at 92. The bonds pay semi-annual interest at a
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Question:
General Electric Company issued $1,000,000 of 10-year bonds at 92. The bonds pay semi-annual interest at a stated rate of 6%. Calculate: a) The amount of cash received from the bond issuance. b) The semi-annual interest payment. c) The total interest expense over the life of the bond. d) The book value of the bond after 7 years. e) Discuss the implications of issuing bonds on the company's financial leverage.
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