Ryngaert Inc. recently issued noncallable bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of 4.8%. If the current market interest rate is 6.4%, at what price should the bonds sell? a. $678.27

Ryngaert Inc. recently issued noncallable bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of 4.8%. If the current market interest rate is 6.4%, at what price should the bonds sell? a. $678.27

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 19MC: Gingko Inc. issued bonds with a face value of $100,000, a rate of 7%, and a 10-yearterm for...

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Question

100%

Ryngaert Inc. recently issued
noncallable bonds that mature in
15 years. They have a par value of
$1,000 and an annual coupon of
4.8%. If the current market
interest rate is 6.4%, at what price
should the bonds sell?
a. $678.27
b. $842.66
c. $854.90
d. $877.66
e. $848.59

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