Waveland Corporation issued $120,000,000 in bonds which mature in 5 years. The bonds pay an annual coupon rate of 10%. Interest payments are made semi-annually. The current market rate for similar bonds is 8%.
a. At what price should this bond offering sell?
b. Create a table showing the amortized premium or discount the first three years of the bonds.
c. How much is the book value of the bonds at the end of the first year (2 payments)?

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The Answer of Waveland Corporation issued $120,000,000 in bonds which mature in 5 years. The bonds pay an annual coupon rate of 10%. Interest payments are made semi-annually. The current market rate for similar bonds is 8%.
a. At what price should this bond offering sell?
b. Create a table showing the amortized premium or discount the first three years of the bonds.
c. How much is the book value of the bonds at the end of the first year (2 payments)?

Waveland Corporation Issued $120,000,000 in Bonds Which Mature in 5