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On June 30, 2013, Gentex issued 5% states rate bonds with a face amount of $300 million. THe bonds mature on June 30, 2033(20 years).
On June 30, 2013, Gentex issued 5% states rate bonds with a face amount of $300 million. THe bonds mature on June 30, 2033(20 years). The market rate of interest for similar bond issues was 4%(2% semiannual rate). Interest is paid semiannually (2.5%) on June 30 and December 31, beginning on Decewmber 31, 2013. A. Determine the price of the bonds on June 30, 2013 B. Calculate the interest expense Gentex reports in 2013 for these bonds. Please show your work. Thank You
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