Question
On January 1 year 1, a company issues 5%, 10 year $400,000 par value bonds that pay annual interest on December 31 of every year.
On January 1 year 1, a company issues 5%, 10 year $400,000 par value bonds that pay annual interest on December 31 of every year. The bonds were issued at 103.
Required: Calculate the total borrowing cost (financing cost) for the company, over the life of the bonds.
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Creative Accounting, Fraud And International Accounting Scandals
Authors: Michael J. Jones
1st Edition
0470057653, 9780470057650
