Account Assignment
Let's use this discussion to study bonds together. Assume the following information for a bond issue: ABC Company issues the bonds at a face value of $10,000.000 with a contractual (stated) interest rate of 4% with a term of 10 years. It's issued on January 1, XX16, and pays interest semi-annually
• What is the amount ABC receives if the bonds are priced at par?
• What is the amount ABC receives if the bonds are priced at 96, a discount?
• What is the amount ABC receives if the bonds are priced at 102, a premium?
Provide the amounts and discuss why the amounts differ. Please be sure you write originally from you understanding. Use the numbers of ABC in your discussion.