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Calculate the amount of capital raised

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Question - Solar Audio Sound Engineering Company needs to raise some funds to pay for expansion. They issue $18,000,000 worth of 11 year debentures paying interest at 11% pa payable semi-annually. When the debentures are issued, interest rates in the debt-capital market are j2 = 11.25% pa compounded semi-annually. Calculate the amount of capital raised. Give your answer in dollars and cents to the nearest cent.

Reference no: EM132848883

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