Question
Bright Sun, Inc. sold an issue of 30-year $1,000 par value bonds to the public. The bonds had a 8.31 percent coupon rate and paid
Bright Sun, Inc. sold an issue of 30-year $1,000 par value bonds to the public. The bonds had a 8.31 percent coupon rate and paid interest annually. It is now 20 years later. The current market rate of interest on the Bright Sun bonds is 12.81 percent. What is the current market price (intrinsic value) of the bonds?
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Managerial Accounting
Authors: Ray H. Garrison, Alan Webb, Theresa Libby
12th Canadian Edition
1260193276, 978-1260193275
