New university plans to issue a 2000000 bond how much will, Financial Management

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New university plans to issue a 2000000 bond how much will

New University plans to issue a $2,000,000 bond. The money is to buy equipment for its physics laboratories. The bond matures in 10 years and requires semiannual interest payments. The stated interest rate is 6 percent, but rates have fallen to 5.96 percent in the market. How much will the university receive when it issues the bond?

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Financial Management: New university plans to issue a 2000000 bond how much will

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