Sandia Corporation issued $2,000,000 worth of callable bonds paying 7% interest. The maturity date for the bonds was in 10 years. A year later, interest rates fell to 5%. The bonds were called and new bonds were sold at the 5% rate. How much did Sandia Corporation save by calling the bonds?

Question

Sandia Corporation issued $2,000,000 worth of callable bonds paying 7% interest. The maturity date for the bonds was in 10 years. A year later, interest rates fell to 5%. The bonds were called and new bonds were sold at the 5% rate. How much did Sandia Corporation save by calling the bonds?​

Zybrea Knight · Accepted Answer

Final Answer : $360,000​

Sandia Corporation issued $2,000,000 worth of callable bonds paying 7% interest. The maturity date for the bonds was in 10 years. A year later, interest rates fell to 5%. The bonds were called and new bonds were sold at the 5% rate. How much did Sandia Corporation save by calling the bonds?

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Sandia Corporation issued $2,000,000 worth of callable bonds paying 7% interest. The maturity date for the bonds was in 10 years. A year later, interest rates fell to 5%. The bonds were called and new bonds were sold at the 5% rate. How much did Sandia Corporation save by calling the bonds?​

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Learning Objectives

Learning Objectives

Related questions

Sandia Corporation issued $2,000,000 worth of callable bonds paying 7% interest. The maturity date for the bonds was in 10 years. A year later, interest rates fell to 5%. The bonds were called and new bonds were sold at the 5% rate. How much did Sandia Corporation save by calling the bonds?