On January 1, 2020, CullumberCorporation purchased 335 of the $1,000 face value, 6%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2030, and pay interest annually beginning January 1, 2021. Cullumber purchased the bonds to yield 11%. How much did Cullumber pay for the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
On January 1, 2020, CullumberCorporation purchased 335 of the $1,000 face value, 6%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2030, and pay interest annually beginning January 1, 2021. Cullumber purchased the bonds to yield 11%. How much did Cullumber pay for the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1RE
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On January 1, 2020, CullumberCorporation purchased 335 of the $1,000 face value, 6%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2030, and pay interest annually beginning January 1, 2021. Cullumber purchased the bonds to yield 11%. How much did Cullumber pay for the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Cullumber must pay for the bonds |
$enter a dollar amount
|
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