Accounting 3rd May

Question 4 Leyvon Company issues $10000000, 5%, 5-year bonds dated July 1, 2017 on July 1 2017. The bonds pay interest semi-annually on December 31 and June 30. The bonds are issued to yield 6%. What are the proceeds from the bonds issue? Present value of a bond= present value of a bond's interest payments + present value of a bond's maturity amount Coupon payment (C) = $10000000*0.025=$250000 n = 5 years i = market rate (required yield) = 6.000% = 0.06 while the adjusted market rate is 3 % k = 2 (Semi-annually) P = Par/Face value = 10000000 present value of a bond's maturity amount= P * (