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What were the proceeds from issuance

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A firm issued a $726,000 bond with a 4-year maturity. Interest payments of 7% of the face value ($726,000) are due annually. The interest payments are called 'coupons' for historical reasons.

Problem 1: The bond was issued at the very end of the fiscal year, and coupons are paid at the end of each fiscal year. The yield on the bond (i.e., the market's discount rate) at the time of issuance was 4%. What were the proceeds from issuance?

Reference no: EM132759937

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