When the market rate of interest was 12%, Patel Corporation issued $1,000,000, 11%, 10-year bonds...
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Accounting
When the market rate of interest was 12%, Patel Corporation issued $1,000,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was
a. $ 321,970
b. $1,000,000
c. $ 943,494
d. $621,524
This is my third time posting this question and I am not clear of how each person came up with market rate of interest from the 12%. I understand how they came up with 110,000 (1,000,000* 11%), but I do not understand how to come up with the 5.650. Please help me understand this calculation. I am getting so frustated.
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