When the market rate of interest was 12%, Halprin Corporation issued $247,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was?Use the present value tables in Exhibit 8 and Exhibit 10.a. $233,043b. $1,404,352Oc. $1,464,209d. $246,999 Periods 4%12345666997810Present Value of $1 at Compound InterestEXHIBIT 84½2%5%5½2%11%12%13%0.961540.892860.884960.900900.81162 0.79719 0.783156%6½%7%10%0.95694 0.95238 0.94787 0.94340 0.93897 0.93458 0.909090.92456 0.91573 0.90703 0.89845 0.89000 0.88166 0.87344 0.826450.88900 0.87630 0.86384 0.85161 0.83962 0.82785 0.81630 0.751310.85480 0.83856 0.82270 0.80722 0.79209 0.77732 0.76290 0.683010.82193 0.80245 0.78353 0.76513 0.74726 0.72988 0.71299 0.620920.79031 0.76790 0.74622 0.72525 0.70496 0.68533 0.66634 0.564470.75992 0.73483 0.71068 0.68744 0.66506 0.64351 0.62275 0.51316 0.48166 0.452350.73069 0.70319 0.67684 0.65160 0.62741 0.60423 0.58201 0.46651 0.43393 0.403880.70259 0.67290 0.64461 0.61763 0.59190 0.56735 0.54393 0.42410 0.39092 0.360610.67556 0.64393 0.61391 0.58543 0.55839 0.53273 0.50835 0.38554 0.35218 0.321970.73119 0.711780.65873 0.635520.59345 0.567430.693050.613320.542760.480320.53464 0.506630.425060.376160.332880.29459

The price of a bond is the PV of its future coupons and par value. This can be determined with the…

When the market rate of interest was 12%, Halprin Corporation issued $247,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was? Use the present value tables in Exhibit 8 and Exhibit 10. a. $233,043 b. $1,404,352 Oc. $1,464,209 d. $246,999

When the market rate of interest was 12%, Halprin Corporation issued $247,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was? Use the present value tables in Exhibit 8 and Exhibit 10. a. $233,043 b. $1,404,352 Oc. $1,464,209 d. $246,999

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 10EA: Pinetop Corporation issued $150,000 10-year bonds at par. The bonds have a stated rate of 6% and pay...

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Concept explainers

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.

Question

When the market rate of interest was 12%, Halprin Corporation issued $247,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was?
Use the present value tables in Exhibit 8 and Exhibit 10.
a. $233,043
b. $1,404,352
Oc. $1,464,209
d. $246,999

Periods 4%
1
2
3
4
5
66699
7
8
10
Present Value of $1 at Compound Interest
EXHIBIT 8
4½2%
5%
5½2%
11%
12%
13%
0.96154
0.89286
0.88496
0.90090
0.81162 0.79719 0.78315
6%
6½%
7%
10%
0.95694 0.95238 0.94787 0.94340 0.93897 0.93458 0.90909
0.92456 0.91573 0.90703 0.89845 0.89000 0.88166 0.87344 0.82645
0.88900 0.87630 0.86384 0.85161 0.83962 0.82785 0.81630 0.75131
0.85480 0.83856 0.82270 0.80722 0.79209 0.77732 0.76290 0.68301
0.82193 0.80245 0.78353 0.76513 0.74726 0.72988 0.71299 0.62092
0.79031 0.76790 0.74622 0.72525 0.70496 0.68533 0.66634 0.56447
0.75992 0.73483 0.71068 0.68744 0.66506 0.64351 0.62275 0.51316 0.48166 0.45235
0.73069 0.70319 0.67684 0.65160 0.62741 0.60423 0.58201 0.46651 0.43393 0.40388
0.70259 0.67290 0.64461 0.61763 0.59190 0.56735 0.54393 0.42410 0.39092 0.36061
0.67556 0.64393 0.61391 0.58543 0.55839 0.53273 0.50835 0.38554 0.35218 0.32197
0.73119 0.71178
0.65873 0.63552
0.59345 0.56743
0.69305
0.61332
0.54276
0.48032
0.53464 0.50663
0.42506
0.37616
0.33288
0.29459

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