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help please! Federal Bank has $800,000 of 7% debenturo bonds outstanding. The bonds were issued at 102 in 2021 and mature in 2041. The bonds
help please!
Federal Bank has $800,000 of 7% debenturo bonds outstanding. The bonds were issued at 102 in 2021 and mature in 2041. The bonds have annual interest payments Read the requirements Requirement 1. How much cash did Federal Bank receive when it issued these bonds? At the time the bonds were issued, Federal Bank received cash of Requirement 2. How much cash in total wil Federal Bank pay the bondholders through the maturity date of the bonds? Through the maturity date of the bonds, Federal Bank will pay the bondholders total cash of Requirement 3. Calculate the difference between your answers to requirements 1 and 2 This difference represents Federal Bank's total interest expense over the te of the bonds. The difference between your answers to requirements 1 and 2 is Requirement 4. Computo Federal Bank's annual interest expense using the straight-line amortization method. Multiply this amount by 20. Your 20-year total should be the same as your answer to requirement 3. Federal Bank's annual interest expense using the straight-line amortization method is Multiply the annual interest expense by 20. The 20-year straight-line intorost total is Is your 20-year total the same as your answer to requirement 3 Step by Step Solution
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