Question
On January 1, Year 2002, Target issued $4,000,000 par value 20-year bonds. The bonds pay interest semiannually on January 1 and July 1 at an
On January 1, Year 2002, Target issued $4,000,000 par value 20-year bonds. The bonds pay interest semiannually on January 1 and July 1 at an annual rate of 8 percent. The bonds were priced to yield (effective rate) 6 percent on the date of issue.
QUESTION: Compute the issue price (cash proceeds) of the bonds on the date of issue.
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
17th Edition
1119613698, 978-1119613695
