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Zero coupon bonds pay no interestthe only cash investors receive is the lump-sum principal payment at maturity. On January 1, 20X1, The Ledge Inc. issued
Zero coupon bonds pay no interestthe only cash investors receive is the lump-sum principal payment at maturity. On January 1, 20X1, The Ledge Inc. issued $250 million of zero coupon bonds at a market yield rate of 12%. The bonds mature in 20 years.
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What was the January 1, 20X1, issue price of these zero coupon bonds?
How much interest expense will The Ledge record on the bonds in 20X2?
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