Bonds were sold to provide market rate of return to investor

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Reference no: EM131148898

On January 1, 2013, Drennen, Inc., issued $3 million face amount of 10-year, 14% stated rate bonds when market interest rates were 12%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2022. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.)

a. Calculate the proceeds (issue price) of Drennen, Inc.'s, bonds on January 1, 2013, assuming that the bonds were sold to provide a market rate of return to the investor. (Enter your answers rounded to the nearest whole number.) If you could, please show steps.

Reference no: EM131148898

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