Homework Answers
Number of Bonds issued = Face Amount/ Face value per share = $180,000/$100 = 1800 shares
Issue price of Bonds = Number of shares issued*Issue price per share = 1800 *106.5= $191,700
Market yield = 8%
1st year interest expense = Issue price of Bonds*Market yield = $191700 *8% = $15,336
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