On January 1st, 2013, Nicklaus Corp issued $5M of 10-year 6% semiannual bonds. The market rate at the time of the issuance was 4%. The
On January 1st, 2013, Nicklaus Corp issued $5M of 10-year 6% semiannual bonds. The market rate at the time of the issuance was 4%. The bonds makes interest payments on January 1 and July 1.
1. Did Nicklaus receive more or less cash than the face value of the bonds? By how much? 2. Assuming a December 31st fiscal year end, how much was interest paid in 2013? 3. What will the total interest expense be over the life of the bond? 4. How much was interest expense in 2013 (round to the nearest dollar)?
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Authors: Steven M. Bragg
3rd Edition
0470403721, 978-0470403723
