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On June 30, 2021, Singleton Computers issued 7% stated rate bonds with a face amount of $200 million. The bonds mature on Jun

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Answer #1

1. Price of the bonds = Present value of interest at 3%, 30 years + Present value of Maturity amount at 3%, 30 years

= 200*3.5%*19.600 + 200*0.412

= $219.6 million

2. Interest expense in 2021 = 200*3.5% = $7 million

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