Galway Bay Enterprises: Compute the present value of a bondExplain how to compute the present value of a bond?
Galway Bay Enterprises issued 10%, 8-year, $2,000,000 par
value bonds that pay intrest semiannually on October 1 and April 1. The bonds
are dated April 1, 2002, and are issued on that date. The discount rate of
interest for such bonds on April 1, 2002, is 12%. What cash proceeds did Galway
Bay receive from issuance of the bond?