On December 31, 2024, a company issued 6% stated rate bonds with a face amount of $104 million. The bonds mature on December 31, 2054. Interest is payable annually on each December 31, beginning in 2025. Determine the price of the bonds on December 31, 2024, assuming that the market rate of interest for similar bonds was 7%. Note: Use tables, Excel, or a financial calculator. Enter your answers in whole dollars and not in millions. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Time values are based on: 30 n = j = 7% Cash Flow Amount Present Value Interest Principal Price of bonds
On December 31, 2024, a company issued 6% stated rate bonds with a face amount of $104 million. The bonds mature on December 31, 2054. Interest is payable annually on each December 31, beginning in 2025. Determine the price of the bonds on December 31, 2024, assuming that the market rate of interest for similar bonds was 7%. Note: Use tables, Excel, or a financial calculator. Enter your answers in whole dollars and not in millions. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Time values are based on: 30 n = j = 7% Cash Flow Amount Present Value Interest Principal Price of bonds
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 77E
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![Brief Exercise 5-20 (Algo) Price of a bond [LO5-10]
On December 31, 2024, a company issued 6% stated rate bonds with a face amount of $104
million. The bonds mature on December 31, 2054. Interest is payable annually on each December
31, beginning in 2025.
Determine the price of the bonds on December 31, 2024, assuming that the market rate of
interest for similar bonds was 7%.
Note: Use tables, Excel, or a financial calculator. Enter your answers in whole dollars and not in
millions. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Time values are based on:
30
n =
¡ =
7%
Cash Flow
Amount
Present Value
Interest
Principal
Price of bonds](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1cccffd7-95d5-453c-94bd-bb7eb51df590%2F8c4f9627-9a24-40bf-8bd8-15a9046f3241%2Fb03oyrl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Brief Exercise 5-20 (Algo) Price of a bond [LO5-10]
On December 31, 2024, a company issued 6% stated rate bonds with a face amount of $104
million. The bonds mature on December 31, 2054. Interest is payable annually on each December
31, beginning in 2025.
Determine the price of the bonds on December 31, 2024, assuming that the market rate of
interest for similar bonds was 7%.
Note: Use tables, Excel, or a financial calculator. Enter your answers in whole dollars and not in
millions. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Time values are based on:
30
n =
¡ =
7%
Cash Flow
Amount
Present Value
Interest
Principal
Price of bonds
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