Determine the bond issue proceeds for each of the bonds

#3012
Determine the bond issue proceeds for each of the bonds payable below. All bonds are issued
on January 1, 2016. a. Belmark Corporation issued bonds in the amount of $ 1,250,000 that will
be paid in 10 years. Interest of $ 18,750 is payable semiannually each June 30 and December
31 with the first interest payment at the end of the first period, on June 30, 2016. If the market
rate of interest is 4%, what is the amount of the bond issue proceeds? b. Tomtech Corporation
issued bonds in the amount of $ 4,000,000 that will be paid in eight years. Interest of $ 160,000
is payable semiannually each June 30 and December 31 with the first interest payment at the
end of the first period, on June 30, 2016. If the market rate of interest is 6%, what is the amount
of the bond issue proceeds?View Solution:
Determine the bond issue proceeds for each of the bonds

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