Issue Price The following terms relate to independent bond issues: 420 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 420 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 780 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments 1,900 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar. Situation Selling Price of the Bond Issue a. $ b. $ c. $ d. $
Issue Price The following terms relate to independent bond issues: 420 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 420 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 780 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments 1,900 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar. Situation Selling Price of the Bond Issue a. $ b. $ c. $ d. $
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.3E: Issue Price The following terms relate to independent bond issues: 500 bonds; $1,000 face value; 8%...
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Issue Price
The following terms relate to independent bond issues:
- 420 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
- 420 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
- 780 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
- 1,900 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments
Use the appropriate present value table:
PV of $1 and PV of Annuity of $1
Required:
Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar.
Situation | Selling Price of the Bond Issue |
a. | $ |
b. | $ |
c. | $ |
d. | $ |
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