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taxygood
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Joined: 14 Apr 2009
Location: United States
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Posts: 17

Posted: 22 Apr 2009 at 00:04 \| IP Logged

This is answer from the teacher

($9,000,000 – $8,649,000) ÷ 117 = $3,000/month

($9,000,000 × .09 × 3/12) + ($3,000 × 3) = $211,500.

divyagovil1
Major Contributor

Joined: 30 Jan 2009
Location: India
Online Status: Offline
Posts: 1456

Posted: 22 Apr 2009 at 00:27 \| IP Logged

how come the interest in the solution as 9%?

As per the question you provided, interest rate is 7% :-

"Lal Corporation issued $9,000,000 of 7%, ten-year convertible bonds on July 1, 2004 at 96.1 plus accrued interest. "

Was there a typo?

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