Question
On January 1, year 1, ABC. Corp. issued bonds as follows: Face value $8000000 Stated (or coupon) annual rate of interest 5 % Coupon is
On January 1, year 1, ABC. Corp. issued bonds as follows:
Face value $8000000
Stated (or coupon) annual rate of interest 5 % Coupon is paid twice annually.
Market annual rate of interest 16 %
Term in years 3
How much did the bond sell for? Round your answer to the nearest dollar.
Answer:
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Corporate Finance With Connect Access Card
Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe
10th Edition
1259672484, 978-1259672484
