On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $300 million. The bonds mature on September 30, 2038 (20 years). The market rate of interest for similar bonds was 10%.Interest is paid semiannually on March 31 and September 30.Required:Determine the price of the bonds on September 30, 2018.
On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $300 million. The bonds mature on September 30, 2038 (20 years). The market rate of interest for similar bonds was 10%.Interest is paid semiannually on March 31 and September 30.Required:Determine the price of the bonds on September 30, 2018.
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 September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $300 million. The bonds mature on September 30, 2038 (20 years). The market rate of interest for similar bonds was 10%.
Interest is paid semiannually on March 31 and September 30.
Required:
Determine the price of the bonds on September 30, 2018.
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