Find what proceeds does reed receive from the investors

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Problem 1: Reed Corp. sells $700,000 of bonds to private investors. The bonds are due in five years, have a 4% coupon rate and interest is paid semiannually. The bonds were sold to yield 6%. What proceeds does Reed receive from the investors?

a. $762,326
b. $641,027
c. $762,878
d. $640,289
e. None of these are correct.

Reference no: EM132728728

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