A $23,000 bond redeemable at par on September 01, 2013 is purchased on April 17, 2002. Interest is 7.4% payable semi-annually and the yield is 7.2% compounded semi-annually. (a) What is the cash price of the bond? (b) What is the accrued interest? (c) What is the quoted price?

A $23,000 bond redeemable at par on September 01, 2013 is purchased on April 17, 2002. Interest is 7.4% payable semi-annually and the yield is 7.2% compounded semi-annually. (a) What is the cash price of the bond? (b) What is the accrued interest? (c) What is the quoted price?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2PA: On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The...

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A $23,000 bond redeemable at par on September 01, 2013 is purchased on April 17, 2002. Interest is 7.4% payable
semi-annually and the yield is 7.2% compounded semi-annually.
(a) What is the cash price of the bond?
(b) What is the accrued interest?
(c) What is the quoted price?
(a) The cash price is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as
needed.)

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