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What is the expected selling price of the bonds

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Reference no: EM132945031

Question - Stech Co. is issuing P2.6 million 12% bonds in a private placement on July 1, 2010. Each P1,000 bond pays interest semi-annually on December 31 and June 30 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: EM132945031

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