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Unformatted text preview: of the company has requested construction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $2,300,000 of 11% term corporate bonds on March 1, 2007, due on March 1, 2022, with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instruments is 10%. Instructions As the controller of the company, determine the selling price of the bonds. (Round answer to zero decimal places. Hint: Use tables in text.) Selling price of bonds $ 2476789...
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This note was uploaded on 04/26/2010 for the course ACCT 320 taught by Professor Son during the Spring '10 term at Morgan.
- Spring '10