Calculate the amount that sanchez will receive

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Reference no: EM13914122

Sanchez, Inc., is considering the sale of two bond issues. Choice A is a $1,200,000 bond issue that pays semiannual interest of $64,000 and is due in 20 years. Choice B is a $1,200,000 bond issue that pays semiannual interest of $60,000 and is due in 15 years. Assume that the market interest rate for each bond is 12 percent. Calculate the amount that Sanchez will receive if both bond issues occur. (Hint: Calculate the present value of each bond issue and sum.)

Reference no: EM13914122

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