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Concord Company issues $24300000, 8%, 5-year bonds dated January 1, 2017 on January 1, 2017. The...

Concord Company issues $24300000, 8%, 5-year bonds dated January 1, 2017 on January 1, 2017. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 7%. What are the proceeds from the bond issue?

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Answer #1

Issue price of bonds = Present value of interest+Present value of maturity

= (24300000*4%*8.31661)+(24300000*0.70892)

Issue price of bonds = 25310501

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