Widget Inc. issues a $50,000, 5-year bond with a stated interest rate of 6%, payable semi-annually. Calculate:
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Question:
Widget Inc. issues a $50,000, 5-year bond with a stated interest rate of 6%, payable semi-annually. Calculate:
a) The amount of cash received upon issuance.
b) The semi-annual interest payment.
c) The total interest expense over the life of the bond.
d) The book value of the bond after 3 years.
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