(APPENDIX) CALCULATING BOND ISSUE PRICE On December 31, 2008, University Theatres issued $500,000 face value of bonds....

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(APPENDIX) CALCULATING BOND ISSUE PRICE On December 31, 2008, University Theatres issued $500,000 face value of bonds. The stated rate is 6 percent, and interest is paid semiannually on June 30 and December 31.

The bonds mature in 10 years.

a. Assuming the market rate of interest is 4 percent, calculate at what price the bonds are issued.

b. Assuming the market rate of interest is 8 percent, calculate at what price the bonds are issued.

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Cornerstones Of Financial Accounting Current Trends Update

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Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen

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(APPENDIX) CALCULATING BOND ISSUE PRICE On December 31, 2008, University Theatres issued $500,000 face value of bonds....

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Cornerstones Of Financial Accounting Current Trends Update

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