Spiller Corp. plans to issue 10%, 15-year, $500,000 par value bonds payable that pay interest semiannually on June 30 and December 31. The bonds are dated December 31, 2019, and are issued on that date. If the market rate of interest for the bonds is 8% on the date of issue, what will be the total cash proceeds from the bond issue?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Spiller Corp. plans to issue 10%, 15-year, $500,000 par value bonds payable that pay interest semiannually
on June 30 and December 31. The bonds are dated December 31, 2019, and are issued on that date. If
the market rate of interest for the bonds is 8% on the date of issue, what will be the total cash proceeds
from the bond issue?

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