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Moreau Manufacturing Inc. has $220,000 of 11% debenture bonds outstanding. The bonds were issued at 103 in 2020 and mature in 2040. Requirements 1. How
Moreau Manufacturing Inc. has $220,000 of 11% debenture bonds outstanding. The bonds were issued at 103 in 2020 and mature in 2040. Requirements 1. How much cash did Moreau receive when it issued these bonds? 2. How much cash in total will Moreau pay the bondholders through the maturity date of the bonds? 3. Take the difference between your answers to Requirements 1 and 2. This difference represents Moreau's total interest expense over the life of the bonds. 4. Compute Moreau's annual interest expense by the straight-line amortization method. Multiply this amount by 20. Your 20-year total should be the same as your answer to Requirement 3. Requirement 1. How much cash did Moreau receive when it issued these bonds? Moreau Manufacturing Inc. received $ at bond issuance. Requirement 2. How much cash in total will Moreau pay the bondholders through the maturity date of the bonds? Moreau Manufacturing Inc. will pay the bondholders $ through the maturity date of the bonds. Requirement 3. Take the difference between your answers to Requirements 1 and 2. This difference represents Moreau's total interest expense over the life of the bonds. The difference between your answers to Requirements 1 and 2 is $[. Requirement 4. Compute Moreau's annual interest expense by the straight-line amortization method. Multiply this amount by 20. Your 20-year total should be the same as your answer to Requirement 3. Moreau's annual interest expense by the straight-line amortization method is $ Multiply the annual interest expense by 20: S
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