Question
Calculating Bond Issue Price On December 31, 2018, University Theatres issued $500,000 face value of bonds. The stated rate is 8%, and interest is paid
Calculating Bond Issue Price
On December 31, 2018, University Theatres issued $500,000 face value of bonds. The stated rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in 15 years.
Required:
a. Assuming the market rate of interest is 6%, calculate at what price the bonds are issued. $
b. Assuming the market rate of interest is 10%, calculate at what price the bonds are issued. $
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College Accounting A Practical Approach 1-15
Authors: Jeffrey Slater
4th Edition
013142050X, 978-0131420502
