Question
On January 1, 2019, Learned Inc, issued $14 million face amount of 20-year, 18% stated rate bonds when market interest rates were 20%. The bonds
On January 1, 2019, Learned Inc, issued $14 million face amount of 20-year, 18% stated rate bonds when market interest rates were 20%. The bonds pay interest semiannually each June 30 and December 31 and mature on December 31, 2038.Table 6-4,Table 6-5(Use appropriate factor from the table provided.)
Required:
a.Calculate the proceeds (issue price) of Learned Inc.'s, bonds on January 1, 2019, assuming that the bonds were sold to provide a market rate of return to the investor.(Round PV factor to 4 decimal places. Enter your answers in dollars, rather than in millions of dollars.)
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