pls answer the following question.thanks Marin Inc. manufactures cycling equipment. Recently, the company's vice-president of operations has requested construction of a newplant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the board of directors hasdecided to raise funds for the new plant by issuing $2,280,000 of 13% term corporate bonds on March 1, 2023, due on March 1, 2037,with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instrumentsis 12%.(a)As Marin's controller, determine the selling price of the bonds. (Round present value factor calculations to 5 decimal places, e.g.1.25124 and final answer to O decimal places, e.g. 5,275.)Click here to view the factor table PRESENT VALUE OF 1.Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.Selling price of the bonds $

STEP 1 Coupons may or may not be connected to a bond. A coupon is expressed as a nominal percentage…

Answered: Marin Inc. manufactures cycling…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 19P

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