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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
A corporation issues $40,000,000 of 6% bonds to yield an effective interest rate of 8%.
a. Was the amount of cash received from the sale of the bonds more or less than
$40,000,000?
b. Identify the following amounts related to the bond issue: (1) face amount, (2) market rate of interest, (3) contract rate of interest, and (4) maturity amount.
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