Question
Computing Bond Issue Price Bushman, Inc., issues $300,000 of 9% bonds that pay interest semiannually and mature in 10 years. Compute the bond issue price
Computing Bond Issue Price
Bushman, Inc., issues $300,000 of 9% bonds that pay interest semiannually and mature in 10 years. Compute the bond issue price assuming that the bonds' market rate is:
10% per year compounded semiannually. Round your answers to the nearest dollar.
| Present value of principal repayment |
|
| Present value of interest payments |
|
| Selling price of bonds |
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Using Accounting & Financial InformationAnalyzing, Forecasting, And Decision Making
Authors: Mark S. Bettner
2nd Edition
1947098683, 9781947098688
