How much does the company have to pay the bond


Because market interest rates were near all-time lows at 4% per year, a hand tool company decided to call (i.e., pay off ) the high-interest bonds that it issued 3 years ago. If the interest rate on the bonds was 9% per year, how much does the company have to pay the bond holders? The face value (principal) of the bonds is $6,000,000.

Request for Solution File

Ask an Expert for Answer!!
Mechanical Engineering: How much does the company have to pay the bond
Reference No:- TGS01468593

Expected delivery within 24 Hours