What was the market rate of interest at the time

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Reference no: EM131879689

On 1/1/2000 XYZ Corp issued $1 billion (face value) 8% bonds. The bonds mature in 15 years and pay annual interest on December 31 of each year. The market rate when the bonds were issued was 8%. On 12/31/2013, XYZ Corp buys back the bonds in the secondary bond market and recognizes a loss of $18.86 million. What was the market rate of interest at the time the bonds were repurchased [note: if you believe the market interest rate was 20.5% write 20.5]?

Reference no: EM131879689

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