Question
ABC Paper Corporation is looking to sell $50,000 in bonds with $4,000 in coupon interest payments, and a 6% interest rate due in 10 years.
ABC Paper Corporation is looking to sell $50,000 in bonds with $4,000 in coupon interest payments, and a 6% interest rate due in 10 years. Assume that the 3 digit present value of the bond is .512, and the 3 digit present value of the coupon interest payment is 4.98. What is the present value of the bond? -Please explain the process. Thank you
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
