Ordinarily,the proceeds from the sale of a bond issue will be equal to:

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The sale price of a bond issue is determined by the present value of the face amount plus the present value of the stream of interest payments. The face amount is the amount that will be paid at maturity, and the interest payments are the periodic payments made to bondholders. The present value of these future cash flows is calculated using a discount rate that reflects the risk of the bond. Therefore, the proceeds from the sale of a bond issue will be equal to the present value of the future cash flows, which is the sum of the present values of the face amount and the stream of interest payments.

Ordinarily,the Proceeds from the Sale of a Bond Issue Will