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Question - A corporation issued bonds on January 1, 2018 with the following terms:
Face Value: $500,000
Coupon Rate of Interest 8%,
Term: 10 years
Interest: Semi-annual payments on June 30 and December 31
Market Rate of Interest 10%
Required - What is the total cost of borrowing on this bond?
What is the difference between an Enterprise Fund and an Internal Service Fund?
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