Solution-Effective annual interest

Effective annual interest

Reference no: EM132395457

Hancock corporation issued $800,000 of 8% bonds on January 1, 2012, due on January 1, 2022. The interest is to be paid twice a year on July 1 and January 1. The bonds were sold to yield 12% effective annual interest.

If the investors were willing to accept a yield of 8%, how much cash could be raised?

Reference no: EM132395457

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Effective annual interest

Reference no: EM132395457

Reference no: EM132395457

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