anonymous
  • anonymous
I need Help!!! Clancey Inc. issues $2,100,300 of 7% bonds due in 14 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 11%. What amount will Clancey receive when it issues the bonds?
Mathematics
  • Stacey Warren - Expert brainly.com
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SOLVED
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jamiebookeater
  • jamiebookeater
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anonymous
  • anonymous
please help
anonymous
  • anonymous
That is too specific for financial math. I guess you have to calculate the discount because the earning is lower than 11%.
anonymous
  • anonymous
So the discount is 7/11 = 0.6363 and the answer is 2,100,300 x 7/11 = 1336554.54

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anonymous
  • anonymous
But I am not sure of that.
anonymous
  • anonymous
answer was 1,513,731 but thank you for atleast trying
anonymous
  • anonymous
Oh, I didn't take into account the 14 years, it can have something to do with that difference.
anonymous
  • anonymous
You are welcome.

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