On April 1, 2020, ET Inc. has available for issue $391,000 bonds due in four years. Interest at the rate of 5.5% is to be paid quarterly Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

On April 1, 2020, ET Inc. has available for issue $391,000 bonds due in four years. Interest at the rate of 5.5% is to be paid quarterly Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 65BE

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Question

Problem 14-5A Calculating the issue price using business calculator PV function LO4
Part 1
On April 1, 2020, ET Inc. has available for issue $391,000 bonds due in four years. Interest at the rate of 5.5% is to be paid quarterly.
Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to the
nearest whole dollar.)
a.
b.
C.
Market Interest Issue Price of the
Bonds
Rate
6.5%
5.5%
4.5%

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