Question
Bond Issue On January 1, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%. Interest is
Bond Issue
On January 1, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%. Interest is to be paid semiannually.
Prepare calculations to prove that the selling price of the bonds is $138,959.90.Click here to access the tables to use with this exercise. Round your answers to two decimal places, if necessary.
How to find the Present value of principal, Present value of interest and Selling price?
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Financial Accounting
Authors: Jamie Pratt, Michael F Peters
11th Edition
1119745322, 978-1119745327
