Part 1 On April 1, 2020, Shelter Bay Inc. has available for issue $900,000 bonds due in
Question:
Part 1
On April 1, 2020, Shelter Bay Inc. has available for issue $900,000 bonds due in four years. Interest at the rate of 10% is to be paid quarterly. Calculate the issue price if the market interest rate is:
a. 11%
b. 10%
c. 9%
Part 2
On October 1, Shelter Bay Inc. has available for issue a $326,000 bond due in eight years. Interest at the rate of 12% is to be paid semiannually. Calculate the issue price if the market interest rate is:
a. 11.50%
b. 12.00%
c. 12.75%
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Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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