Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 58

Because market interest rates were near all-time lows at 4% per year, a hand tool company decided to call (i.e., pay off ) the high-interest bonds that it issued 3 years ago. If the interest rate on the bonds was 9% per year, how much does the company have to pay the bond holders The face value (principal) of the bonds is $6,000,000.