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What is the expected selling price of the bonds

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Question - Stech Co. is issuing $6.5 million 12% bonds in a private placement on January 1, 2012. Each $1,000 bond pays interest semi-annually on June 30 and December 31 of each year. The bonds mature in ten years. At the time of issuance, the market interest rate for similar types of bonds was 8%. What is the expected selling price of the bonds?

Reference no: EM132776170

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