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On January 1 of this year, Kaizen Corporation issued a $500 million note that matures in 10 years. The note has a stated interest rate
On January 1 of this year, Kaizen Corporation issued a $500 million note that matures in 10 years. The note has a stated interest rate of 6 percent. When the note was issued, the market rate was 6 percent. The note pays interest twice per year, on June 30 and December 31. Required: At what price was the note issued? If the market rate was 5%, would the price be higher, lower, or the same? If the market rate was 7%, would the price be higher, lower, or the same
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