Question
On January 1, Year 2002, Merrill Corporation issued $4,000,000 par value 20-year bonds. The bonds pay interest semi-annually on January 1 and July 1 at
On January 1, Year 2002, Merrill Corporation issued $4,000,000 par value 20-year bonds. The bonds pay interest semi-annually on January 1 and July 1 at an annual rate of 8%. The bonds were priced to yieled (effective rate) 6% on the date of issue.
Compute the issue price (cash proceeds) of the bonds on the date of issue.
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
