Bonds to private investors


Wells Fargo sells $200,000 of bonds to private investors. The bonds are due in five years, have an 8% coupon rate, and interest is paid semi-annually. The bonds were sold to yield 6%. What proceeds does Wells Fargo receive from the investors?

a. $200,000

b. $217,060

c. $206,000

d. $183,777

e. None of the above

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Accounting Basics: Bonds to private investors
Reference No:- TGS064191

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