Question
Mountain Excursions issues bonds due in 10 years with a stated interest rate of 11% and a face value of $120,000. Interest payments are made
Mountain Excursions issues bonds due in 10 years with a stated interest rate of 11% and a face value of $120,000. Interest payments are made semi-annually. The market rate for this type of bond is 12%. Using a financial calculator or Excel, calculate the issue price of the bonds.
Multiple Choice
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$75,928.
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$113,118.
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$127,477.
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$120,000.
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
