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How much is each interest payment

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Question - Thornhill Inc., issued $2500000 of 9% bonds on June 30,2012, due on June 30, 2025 with interest payable semi-annually. The market interest rate for similar financial instruments, at time of issuance, is 10%.

Note: After finding the (n, i) for the stream of interest payments, use the same (n, i) when finding the PV of the principal; Interest is not paid the day bonds are issued.

a. How much is each interest payment?

b. How much will the company receive when the bonds are bought?

Reference no: EM132060849

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