On October 1, 2015 the Dream Team Corporation negotiated a 5-year bond with a maturity value of $10,000,000. The Dream Team Corporation has a December 31 fiscal year end. The bond will pay interest at a rate of 6.0% per annum payable March 31 and September 30 of each year. When the bond was issued, the market rate (bond yield) was 4%.
NOTE: Present value tables can be found at the back of this exam (second last page)
Required
Calculate the proceeds received when the bond is issued.
