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(Solution) - Idaho Company issued 15 year 100 000 bonds with a stated rate

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Idaho Company issued 15-year, $100,000 bonds with a stated rate of interest of 8%, compounded quarterly. The effective interest rate demanded by investors for bonds of this level of risk is also 8%. Calculate the issuance price of the bond (e.g., the total present value).


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This question was answered on: Jul 11, 2017

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