Calculate the selling price of the bonds

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Reference no: EM132475084

Point 1: Larkspur Inc. manufactures cycling equipment. Recently, the company's vice-president of operations has requested construction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $2,440,000 of 13% term corporate bonds on March 1, 2020, due on March 1, 2034, with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instruments is 12%.

Question 1: calculate the selling price of the bonds.

Reference no: EM132475084

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