A company sold a 1000000 issue of bonds with a 15-year life


A company sold a $1,000,000 issue of bonds with a 15-year life, paying 4% interest per year. The bonds were sold at par value. If the company paid a selling fee of $50,000 and has an annual expense of $70,256 for mailing and record keeping, what is the true rate of interest that the company is paying for the borrowed money?

Request for Solution File

Ask an Expert for Answer!!
Business Economics: A company sold a 1000000 issue of bonds with a 15-year life
Reference No:- TGS01420710

Expected delivery within 24 Hours