A P 1,000, 5% bond pays dividend semiannually and will be redeemed at 110% on June 21, 2004. It is bought on June 21, 2001 to yield 4% interest. Determine the price of the bond. A. P 1,133.78 B. P 1,155.06 C. P 1,144.81 D. P 1,122.70

A P 1,000, 5% bond pays dividend semiannually and will be redeemed at 110% on June 21, 2004. It is bought on June 21, 2001 to yield 4% interest. Determine the price of the bond. A. P 1,133.78 B. P 1,155.06 C. P 1,144.81 D. P 1,122.70

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual...

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Question

A P 1,000, 5% bond pays dividend semiannually and will be redeemed at 110% on June 21, 2004. It is bought on June 21, 2001 to yield 4% interest. Determine the price of the bond.

A. P 1,133.78

B. P 1,155.06

C. P 1,144.81

D. P 1,122.70

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