Calculate the proceeds issue price of learned inc.s bonds, Ask an Expert

Accounting

On January 1, 2010, Learned Inc., issued $14 million face amount of 20-year, 14% stated rate bonds when market interest rates were 16%. The bonds pay interest semiannually each June 30 and December 31 and mature on December 31, 2029.

Calculate the proceeds (issue price) of Learned Inc.'s, bonds on January 1, 2010, assuming that the bonds were sold to provide a market rate of return to the investor.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9438297

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