The bonds would have a stated interest rate

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Assume that P & P wants to build a new warehouse. The CFO has stated that the building will cost $1.5 million. She has asked you to determine the dollar amount of bonds that P & P would have to issue to cover this cost, assuming that the bonds would have a stated interest rate of 8 percent, a 10-year term and the market rate is currently 6 percent.

Reference no: EM131286718

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The bonds would have a stated interest rate : Assume that P & P wants to build a new warehouse. The CFO has stated that the building will cost $1.5 million. She has asked you to determine the dollar amount of bonds that P & P would have to issue to cover this cost, assuming that the bonds would ..

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