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GMAC Corporation issued a $112,000 bond that matures in four years. The bond has a stated interest rate of 8 percent. On January 1, 2014,
GMAC Corporation issued a $112,000 bond that matures in four years. The bond has a stated interest rate of 8 percent. On January 1, 2014, when the bond was issued, the market rate was 10 percent. The bond pays interest twice per year, on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)
At what price was the bond issued? |
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