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May I please have assistance with homework? On 1-1 Your company sells a $3,000 face value bond, stated interest rate of 8%, Market interest rate
May I please have assistance with homework?
On 1-1 Your company sells a $3,000 face value bond, stated interest rate of 8%, Market interest rate of 12%, Life of 10 years, semiannual. The first interest payment is made 6/30. Answer the following: 1. Will this bond sell for a discount or a premium _____________________ 2. How many time periods will this bond pay interest payments for _________________ 3. what interest rate will you use for the \"I\" a. 8% b. 12% c. 4% d. 6% 4. What is the present worth of the maturity value (face value)________ 5. What is the present worth of the interest payments ______________ 6. What is the present worth of the bond (what amount should it sell for) ________________ 7. How much is the discount or premium _________________ 8. What is the journal entry to record the bond sale on 1-1 9. What is the journal entry to record the first bond interest payment on 06/30Step by Step Solution
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