Question
A $700,000, 20-year, 8% bond issue was sold to yield 10%. Interest was payable annually. Actuarial information for 20 periods follows: 8% 10% Future value
A $700,000, 20-year, 8% bond issue was sold to yield 10%. Interest was payable annually. Actuarial information for 20 periods follows:
8% 10%
Future value of 1 4.661 6.728
Present value of 1 0.21455 .14864
Future value of annuity of 1 45.762 57.275
Present value of annuity of 1 9.818 8.514
Required:
Compute the amount of cash that was received when the bonds were issued.
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Comparative International Accounting
Authors: Christopher Nobes, Robert Parker
13th edition
1292081902, 1292081908, 9781292081960 , 1292081961, 978-1292081908
