Module 7 Slides-student

5 semiannual coupon rate and a maturity date in 2015

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Unformatted text preview: n rate, and a maturity date in 2015 (i.e., 6 periods). in List the total cash investors purchasing this bond will receive: The company issuing the bond will receive total cash of: Bond Issue Price (Discount) Company X issues bonds with: A $600,000 face value A 1.5% coupon rate of interest paid semiannually A 2.0% semiannual market rate of interest A maturity date in 2015 (i.e., 6 periods) Effective Interest Method (Discount) Effective Bond Issue Price (Premium) Company X issues bonds with: A $600,000 face value A 1.5% coupon rate of interest paid semian...
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