Business, 07.12.2021 05:30 baabyylewis
A corporation issues for cash $8,000,000 of 20-year, 8% bonds, interest payable semiannually. The amount received for the bonds will be:
a. the present value of $8,000,000 to be repaid in 20 years, less the present value of 40 semiannual interest payments of $320,000.
b. the present value of 20 annual interest payments of $640,000, plus the present value of $8,000,000 to be repaid in 20 years.
c. the present value of 20 annual interest payments of $640,000.
d. the present value of 40 semiannual interest payments of $320,000, plus the present value of $8,000,000 to be repaid in 20 years.
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A corporation issues for cash $8,000,000 of 20-year, 8% bonds, interest payable semiannually. The am...
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