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A Company Issued 10-Year Bonds with a Par Value of $20,000,000

Question 35

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A company issued 10-year bonds with a par value of $20,000,000 and an 8% annual face rate of interest on January 2, 2013. The issue price of the bond issue was $19,866,397 which reflected an 8.1% effective interest rate. Interest payments are made annually.
Required:
A company issued 10-year bonds with a par value of $20,000,000 and an 8% annual face rate of interest on January 2, 2013. The issue price of the bond issue was $19,866,397 which reflected an 8.1% effective interest rate. Interest payments are made annually. Required:

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