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Bonita Hills Ltd

Accounting

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Bonita Hills Ltd. issued five-year bonds with a face value of $150,000 on January 1. The bonds have a coupon interest rate of 6% and interest is paid semi-annually on June 30 and December 31. The market interest rate was 4% when the bonds were issued at a price of 109. (a) Your answer is incorrect. Using above information, determine the proceeds received by the company when the bonds were issued. Proceeds from issue of the bonds