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Compute the proceeds from the bond sale

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Reference no: EM132468992

Problem - On January 2, 2014, Weatherly Company issued $8,000,000 of their 10-year bonds at 96. The bonds have a stated rate of 6% and the annual interest payments are made each December 31.

Required: Compute the following amounts. Show 3 decimal places for the effective interest rate (such as 7.042%). Show computations.

1. Proceeds from the bond sale.

2. Effective interest rate (annual).

3. Amount of each interest payment.

Reference no: EM132468992

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