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On July 15, 2018, Spring Inc. make a $40,000,000 bond issuance to public investors. The bond matures in seven years on July 14, 2025, has
- On July 15, 2018, Spring Inc. make a $40,000,000 bond issuance to public investors. The bond matures in seven years on July 14, 2025, has a coupon rate of 4% or $160,000, and pays interest annually on July 14. Determine how much Spring will receive in proceeds from its bond if the effective interest (yield to maturity) rate when the bond is issued is
- 3 percent
- 4 percent
- 5 percent
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Sound Investing, Chapter 15 - Liability Tricks
Authors: Kate Mooney
2nd Edition
0071719377, 9780071719377
