Home / Questions / On January 2 2016 Wine Corporation wishes to issue $4000000 par value of its 8% 20-year bo...
On January 2, 2016, Wine Corporation wishes to issue $4,000,000 (par value) of its 8%, 20-year bonds. The bonds pay interest semiannually on July 1 and January 1. The current yield rate on such bonds is 12%. Compute the issue price of the bonds. Complete the first 4 semiannual interest calculations on an effective interest table.
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