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How to calculate the issue price of the bonds with normal calculator? On January 1, 2018, Aaron Incorporated issued $1,560,000 par value, 3%, 7-year bonds
How to calculate the issue price of the bonds with normal calculator?
On January 1, 2018, Aaron Incorporated issued $1,560,000 par value, 3%, 7-year bonds (i.e., there were 1,560 of $1,000 par value bonds in the issue) Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1. Determine the issue price of the bonds based on a 4% market rate of interest. Prepare the amortization table for the first 2 years assuming that Aaron uses the effective interest rate method. Determine the issue price of the bonds. (Use the present value and future value tabl- calculations. If using present and future value tables or the formula method, use fact. the nearest whole dollar.) The issue price of the bonds is $Step by Step Solution
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