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Your company issues bonds with a face value of $500,000. The stated rate is 4%, interest is paid semi- annually, and the bonds mature in 10 years. The bonds are issued with an effective yield of 4.125% The bonds are issued at a The bonds are sold for $500,000 How much is each semi-annual interest payment to bond holders

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Answer:

The Bonds are issued at a Discount.

The bonds are sold for less than $500000

Semi annual interest payment to bond holder = (500000*2%) = 10000

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