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Determine the price of the bonds on june

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Question - On June 30, 2011, Gunderson Electronics issued 8% stated rate bonds with a face amount of $300 million. The bonds mature on June 30, 2031 (20 years). The market rate of interest for similar bond issues was 10% (5% semiannual rate). Interest is paid semiannually (4%) on June 30 and December 31, beginning on December 31, 2011.

Required:

a. Determine the price of the bonds on June 30, 2011.

b. Calculate the interest expense Gunderson reports in 2011 for these bonds.

If possible- Please show your work- Thank you for taking the time out to answer my question!

Reference no: EM132058124

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