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Calculate the proceeds from issuance

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Question - Prentice Ltd. was authorized to issue $2,500,000 of 10-year, 6% bonds payable on 1 August 20X2. The bonds are due on 31 July 2012. Interest payments dates were 31 July and 31 January. The bond was sold to yield 8%.

Required -

1. Calculate the proceeds from issuance.

2. Calculate the proceeds from issuance if the yield rate is 5% and the bond is issued on 1 August 20X4, still with a maturity date of 31 July 2012.

3. Calculate the proceeds from issuance if the yield rate is 8%, and the bond is issued between interest dates, on 1 October 20X2, still with a maturity date of 31 July 2012. Exclude accrued interest.

Reference no: EM133151365

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