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The Longo Corporation issued $50 million maturity value of 8 percent coupon rate notes, with interest paid semiannually. At the time of the note issuance,
The Longo Corporation issued $50 million maturity value of 8 percent coupon rate notes, with interest paid semiannually.
At the time of the note issuance, equivalent risk-rated debt instruments carried a yield rate of 6 percent. The notes matured in 5 years.
Calculate the proceeds that the Longo Corporation would receive from the sale of the notes.
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