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How much cash does the company pay to the bondholders

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Reference no: EM132971296

Talon, Inc. issues 20,000, $100 bonds at a stated rate of 5%. The bonds will mature in 20 years, and interest is paid semi-annually. The market rate of interest on the day of issuance is 7%.

Problem 1: How much cash does the company pay to the bondholders over the life of the bond? (This includes issuance, interest, and maturity.) Round to the nearest whole dollar.

Reference no: EM132971296

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