Question
Calculate the issue price of bonds Principal $350,000 Payable in 5 years Interest Payable 7% payments due at end of each year Market at issue
Calculate the issue price of bonds
| Principal | $350,000 | |||
| Payable in 5 years | ||||
| Interest Payable | 7% payments due at end of each year | |||
| Market at issue date | 8% | |||
| 1. Calculate Present Value of Principal: | ||||
| 2. Calculate Present Value of Interest: | ||||
| 3. Combine calculated principal and interest: |
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Payroll Accounting
Authors: Bernard J. Bieg, Judith A. Toland
2013 edition
113396253X, 978-1133962533
