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Merlin Company issued seventeen bonds on Dec. 31, Year 1. Each bond has a face value of $1,000. The bonds due date is Dec. 31,
Merlin Company issued seventeen bonds on Dec. 31, Year 1. Each bond has a face value of $1,000. The bonds due date is Dec. 31, Year 12, and the coupon [stated] rate is 10%. The market [effective] rate on the bonds is 12%. The bonds will make interest payments semiannually on June 30 and Dec. 31 each year until maturity on Dec. 31, Year 12. The first interest payment date is June 30, Year 2. The firm uses the effective interest method for bonds payable.
How much Cash would be paid to the lenders in Year 3?
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