Question
A company issues 8%, 5 year bonds with a par value of $500,000 and semiannual interest payments. On the issue date, the annual market rate
A company issues 8%, 5 year bonds with a par value of $500,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%.
What is the bond's issue (selling) price, assuming the Present Value of $1 factor for 3% and 10 semi-annual periods is .7441 and the Present Value of an Annuity factor for the same rate and period is 8.5302?
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Accounting Ethics
Authors: Iris Stuart
1st Edition
1118542401, 9781118542408
