Question
A corporation issues for cash $9,000,000 of 8%, 25-year bonds, interest payable semiannually. The amount received for the bonds will be the a. present value
A corporation issues for cash $9,000,000 of 8%, 25-year bonds, interest payable semiannually. The amount received for the bonds will be the
| a. | present value of 50 semiannual interest payments of $360,000, plus present value of $9,000,000 to be repaid in 25 years. | ||
| b. | present value of 25 annual interest payments of $720,000.
| ||
| c. | present value of 25 annual interest payments of $720,000 plus present value of $9,000,000 in 25 years. | ||
| d. | present value of $9,000,000 to be repaid in 25 years, less present value of 50 semiannual interest paymentss of $360,000. | ||
| e. | none of the above |
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Auditing Business Continuity Global Best Practices
Authors: Rolf Von Roessing
1st Edition
1931332150, 978-1931332156
