Question
On April 15, 2019, Powell Inc. obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer
On April 15, 2019, Powell Inc. obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $361,700. The interest rate charged by the bank was 9.00%. The bank made the loan on a discount basis.
Required: a-1. Calculate the loan proceeds made available to Powell.
Loan Proceeds: ________
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Atom Endeavour Co. issued $35 million face amount of 4.8% bonds when market interest rates were 5.35% for bonds of similar risk and other characteristics. Required: a. How much interest will be paid annually on these bonds? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)
Annual interest payment : ______
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