P14-2 (Issuance and Retirement of Bonds) Venezuela Co. is building a new hockey arena at...
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P14-2 (Issuance and Retirement of Bonds) Venezuela Co. is building a new hockey arena at a cost of $2,500,000 . It received a downpayment of $500,000 from local businesses to support the project, and now needs to borrow $2,000,000 to complete the project. It therefore decides to issue $2,000,000 of 10.50% 10 -year bonds. These bonds were issued on January 1, 2013, and pay interest annually on each January 1. The bonds yield 10.00% . Venezuela paid $50,000 in bond issue costs related to the bond sale. "Note: Use of tables or financial calculators may result is slightly different values due to rounding and significant digits."
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