Bond: A Bond is debt instrument which is used to raise money from an investor. An investor uses the bond to lend his money to a corporate organization or the government for a fixed period of time. The corporate and government should pay a fixed amount of interest to bondholders. It is a major source of finance raising for corporation and government. The terms and conditions of the bonds are described in the bond certificate indicating amounts and date of all payments to be made. The bond has maturity period in which final repayment of the bond is to be made. The bond makes two types of payment to the investors, first is principal amount of bond and second is interest amount. Corporate bonds, convertible bonds, zero coupon bonds, callable bonds, and term bonds are the example of various types of bond. To determine: Net amount of funds

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Chapter 15, Problem 3P

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Bond: A Bond is debt instrument which is used to raise money from an investor. An investor uses the bond to lend his money to a corporate organization or the government for a fixed period of time. The corporate and government should pay a fixed amount of interest to bondholders. It is a major source of finance raising for corporation and government. The terms and conditions of the bonds are described in the bond certificate indicating amounts and date of all payments to be made. The bond has maturity period in which final repayment of the bond is to be made. The bond makes two types of payment to the investors, first is principal amount of bond and second is interest amount. Corporate bonds, convertible bonds, zero coupon bonds, callable bonds, and term bonds are the example of various types of bond.

To determine: Net amount of funds

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