Calculating the proceeds of selling bonds

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Problem:

1. Taylor Corp. sells $400,000 of bonds to private investors. The bonds are due in five years, have an 8% coupon rate, and interest is paid semiannually. The bonds were sold to yield 6%. What proceeds does Taylor receive from the investors?

2. Credit analysis concerns which of the following?

A) The price of a company's stock

B) The ability of a company to consistently pay dividends

C) The probability a company will make timely payments

D) An assessment of a company's credit-granting policies

Summary of problem:

These short answer questions is from Finance. The 1st question is about calculating the proceeds of selling bonds. The 2nd question is about the concerning activity of credit analysis.

Reference no: EM13827671

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