Xyz company sells 100000 of bonds to private investors the, Financial Accounting

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Xyz company sells 100000 of bonds to private investors the

XYZ Company sells $100,000 of bonds to private investors. The bonds are due in 10 years, and have a 5% coupon rate, and interest is paid semi-annually. The bonds were sold to yield 6%.

a) What proceeds does XYZ company receive from investors?

b) What periodic interest payment does XYZ make to investors?

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Financial Accounting: Xyz company sells 100000 of bonds to private investors the

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Financial Accounting: Xyz company sells 100000 of bonds to private investors the

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