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
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
11th edition
978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139
