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Determine the amount of proceeds from the bond issue

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Reference no: EM132506869

Indian Company has decided to borrow from the bond market on January 1, 2019 a $1,000,000 ten year bond paying nominal or cash interest of 6% per year. The bond was issued to yield 4% per year. The bond pays interest semi-annually on December 31.

Question a. Determine the amount of proceeds from the bond issue using tables A-1 and A-2 and record the issue of the bond on January 1, 2019.

Question b. Assume the bond was issued to yield 8% per year. Determine the proceeds from the bond issue.

Reference no: EM132506869

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