Abc mechatronic systems has issued 10 year bonds the face


Question - ABC Mechatronic Systems has issued 10 year bonds. The face value of these bonds is $1,000,000, but ABC is offering them in $1000 units and offers to pay interest at 8% quarterly. Harden Finance Incorporated (HFI), an investing firm, wishes to earn 12% nominal interest compounded quarterly on $10,000 worth of these bonds. How much should HFI pay for these bonds?

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Accounting Basics: Abc mechatronic systems has issued 10 year bonds the face
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