GHI Company issued a 7 year bond on january 2 2020 with a par value of 550000 and pays its investors cash interest payments semi annually (every six months). The market rate for this bond is 6% and the coupon rate is 5% What is the present value of the face value for this bond (Use Present Value Table) what is the present value of the coupon payment? (Use the Present value table)
GHI Company issued a 7 year bond on january 2 2020 with a par value of 550000 and pays its investors cash interest payments semi annually (every six months). The market rate for this bond is 6% and the coupon rate is 5% What is the present value of the face value for this bond (Use Present Value Table) what is the present value of the coupon payment? (Use the Present value table)
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 3EA: Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the...
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GHI Company issued a 7 year bond on january 2 2020 with a par value of 550000 and pays its investors cash interest payments semi annually (every six months). The market rate for this bond is 6% and the coupon rate is 5%
What is the present value of the face
what is the present value of the coupon payment? (Use the Present value table)
Expert Solution
Step 1 - Formula
Present value of face value = Face Value * Present Value interest factor ( market rate, number of years )
Present value of coupen = Coupen * Present Value annuity factor ( market rate, number of years )
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