Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bondable, Inc. issued $100,000, 10-year, 9% bonds that pay interest annually on January 1 when the going market interest rate was 10%. The issue (sale)

Bondable, Inc. issued $100,000, 10-year, 9% bonds that pay interest annually on January 1 when the going market interest rate was 10%. The issue (sale) price of the bonds equal ?

Solution:

$93,851.40 = ($100,000 x 0.3855) + (($100,000 x 0.09) x 6.1446)

I have the solution, but can you explain in depth? where does the numbers come from? (0.3855, 6.1446)?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing

Authors: Alan Millichamp, John Taylor

12th Edition

1473778999, 9781473778993

More Books

Students also viewed these Accounting questions

Question

List the key components within occupational health and safety.

Answered: 1 week ago

Question

Identify the general types of employment laws in Canada.

Answered: 1 week ago

Question

Describe discrimination and harassment in the workplace.

Answered: 1 week ago