Sander Corporation issues a P300,000, 16 percent, 10-year bond at 108. REQUIREMENTS: (a) What is the maturity value? (b) What is the annual cash interest payment? (c) What are the proceeds the company receives upon issuance of the bond? (d) What is the amount of the premium? (e) What is the annual premium amortization?
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Bond Issuance.
Sander Corporation issues a P300,000, 16 percent, 10-year bond at 108.
REQUIREMENTS:
(a) What is the maturity value?
(b) What is the annual cash interest payment?
(c) What are the proceeds the company receives upon issuance of the bond?
(d) What is the amount of the premium?
(e) What is the annual premium amortization?
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