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The following information pertains to a bond issue of the Fusso Corporation: Maturity value: $1,000,000 Maturity date: December 31, 2016 Stated interest rate (coupon rate):
The following information pertains to a bond issue of the Fusso Corporation: Maturity value: $1,000,000 Maturity date: December 31, 2016 Stated interest rate (coupon rate): 8% Interest payments are Date of issue: December 31, 2011 Effective (market) interest rate (Yield to maturity) at issue: 10% On December 31, 2014, the Fusso paid $950,000 to retire entire bonds. $950,000 did not include the coupon payment. The coupon was paid just before the announcement of the bond retirement. made annually on Decem oss using - Format: +Sxx,xxx or -Sxx,xxx)
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