Question
COMPLETE THE TABLE: Chapter 14 princoples of accounting ed 24 Yuca Company issues 10.00%, 15-year bonds with a par value of $350,000 and semiannual interest
COMPLETE THE TABLE: Chapter 14 princoples of accounting ed 24
Yuca Company issues 10.00%, 15-year bonds with a par value of $350,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8.00%, which implies a selling price of 117 1/4.
| Par value | price | Selling price |
| $350,000 | 117 1/4 | 410, 375 |
| Cash flow | Table value | Present value |
| 350,000 par maturity value |
|
|
| 17,500 interest payment |
|
|
| Price bond | N/A |
|
| Difference due to rounding of table values | N/A |
|
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Knowledge Based System For Information System Audit
Authors: Amol B. Devale, R. V. Kulkarni
1st Edition
6200652376, 978-6200652379
