Question
Anna Inc. issues 5-year bonds with a face value of $100,000 on January 1, 20Y1. The bonds pay interest semi-annually on June 30 and December
Anna Inc. issues 5-year bonds with a face value of $100,000 on January 1, 20Y1. The bonds pay interest semi-annually on June 30 and December 31. The stated rate is 5% and the effective rate is 6%. What is the issue price of the bonds?
|
| 2.5% | 3.0% | 5.0% | 6.0% |
| Present Value of a Single Sum for 5 Periods | .88385 | .86261 | .78353 | .74726 |
| Present Value of a Single Sum for 10 Periods | .78120 | .74409 | .61391 | .55839 |
| Present Value of an Annuity for 5 Periods | 4.64583 | 4.57971 | 4.32948 | 4.21236 |
| Present Value of an Annuity for 10 Periods | 8.75206 | 8.53020 | 7.72173 | 7.36009 |
| $100,000 | ||
| $89,176 | ||
| $85,257 | ||
| $95,735 |
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Auditing Practices A Complete Guide
Authors: Gerardus Blokdyk
2023rd Edition
1038804450, 978-1038804457
