Hudson Corp. sells $300,000 of bonds to private investors. The bonds have a 7% coupon rate and interest is paid semiannually. The bonds were sold to yield 10%. What periodic interest payment does Hudson make to its investors?
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Hudson Corp. sells $300,000 of bonds to private investors. The bonds have a 7% coupon rate and interest is paid semiannually. The bonds were sold to yield 10%.
What periodic interest payment does Hudson make to its investors?
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- Jacob Engineering sells $300,000 of bonds to investors. The bonds have an 7% coupon rate and interest is paid semiannually. The bonds were sold to yield 10%. What periodic interest payment does Jacob Engineering make to its investors?Sunland Railroad Co. is about to issue $298,000 of 10-year bonds paying an 12% interest rate, with interest payable annually. The discount rate for such securities is 8%. How much can sunland expect to receive for the sale of these bonds? ????Present value of bonds ????On July 1, Somers Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12 %. The bonds paid interest semi-annually. A. Assuming the bonds sold at 59.55, what was the selling price of the bonds? B. Explain why the cash received from selling this bond is different from the $200,000 face value of the bond. Investors can earn a higher rate ✓ in other similar bonds so the bond sells at a discount
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