Question
A $1,000 par value bond bearing 4% annual coupons is purchased at a discount to yield an effective annual rate of 5%. The write-up in
A $1,000 par value bond bearing 4% annual coupons is purchased at a discount to yield an effective annual rate of 5%. The write-up in value during the first year is $4.36. Which of the following is closest to the purchase price?
- $857
- $867
- $877
- $887
- $897
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
470964731, 978-0470964736, 978-0470161012
