Question
Exercise 9-94 (Algorithmic) Calculating Bond Issue Price On December 31, 2022, University Theatres issued $472,000 face value of bonds. The stated rate is 8%, and
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Exercise 9-94 (Algorithmic) Calculating Bond Issue Price
On December 31, 2022, University Theatres issued $472,000 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.
Do not round interim calculations. If required, round your answers to the nearest dollar. Follow the format shown in present value tables as you complete the requirements below.
Required:
a. Assuming the market rate of interest is 6%, calculate at what price the bonds are issued. $fill in the blank 1
b. Assuming the market rate of interest is 10%, calculate at what price the bonds are issued. $fill in the blank 2
Exercise 9-94 (Algorithmic) Calculating Bond Issue Price
On December 31, 2022, University Theatres issued $472,000 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.
Do not round interim calculations. If required, round your answers to the nearest dollar. Follow the format shown in present value tables as you complete the requirements below.
Required:
a. Assuming the market rate of interest is 6%, calculate at what price the bonds are issued. $fill in the blank 1
b. Assuming the market rate of interest is 10%, calculate at what price the bonds are issued. $fill in the blank 2
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