firm issues 4 year bond, face value 10m semi annual coupon rate -10%. Issuer makes 8 payments of 500,000 and a final payment of 10m. The mkt interest rate is 11% The amount listed on the Balance Sheet of the “issuer” at the time of the issue is closest to: A) $8,567,893 B) 9,683,272 C) 10,000,000 D) 10,329,794
Bond is issued at a discount, I would say B
my calculator agrees with cpk123.
B is correct.