Question
On January 1, a company issued $25 million of 10-year bonds with a coupon rate of 5%, payable semi-annually on June 30 and December 31.
On January 1, a company issued $25 million of 10-year bonds with a coupon rate of 5%, payable semi-annually on June 30 and December 31. The market rate of interest on the issuance date was 4%. What was the issuance price of the bonds?
Round your answer to the nearest dollar.
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Management Accounting
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
7th Edition
978-1760421144, 1760421146
