Question
A firm issued $1,000,000, face amount of 4% bonds on January 1, 2016. The bonds are 5-year bonds, and interest is payable every six months.
A firm issued $1,000,000, face amount of 4% bonds on January 1, 2016. The bonds are 5-year bonds, and interest is payable every six months. At the time of issue, the market rate of interest was 6%. Calculate the present value of this bond showing your work. Prepare an amortization table in Excel for this bond.
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Financial Accounting
Authors: Jeffrey Waybright, Robert Kemp, Sherif Elbarrad
2nd Canadian edition
133375536, 9780133845396, 133845397, 978-0133375534
