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What would be the proceeds from issuing a 3-year $600,000 face amount, 3% coupon corporate bond, that pays interest semi-annually, at a time when the
What would be the proceeds from issuing a 3-year $600,000 face amount, 3% coupon corporate bond, that pays interest semi-annually, at a time when the market is paying a 2% effective yield for similar bonds? You should use the proper formulas (show steps along the way) to calculate your answer and you must show the issuance in the financial statement effects template below. Balance Sheet (+) Noncash Assets (6) Liabilities Transaction Income Statement (-) Expenses Cash Asset Contributed Capital (+) Earned Capital Revenues T Net Income Bond Issuance (+) (+) (+) (-) (=) Pay Interest and Recognize Expense at the End of 6 (+) (=) (+) (+) (-) (=) Calculations
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