V. Consider the following example. Bonds with a term of 5 years and face value of $1,000,000 are issued on January 1, 2017 for the amount of $900,000. The contract rate of interest is 10%. Market rate of interest is 12%. Interest is paid annually on December 31.1) Calculate the amount of interest paid in 2017. Show details of your calculations.
RECOMMENDED!!V. Consider the following example
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