Question
On 1/1/2016, ABC Corporation purchased 200 of the $1,000 face value, 8% coupon, 10-year bonds of DEF Inc. The bonds mature on 1/1/2026, and pay
On 1/1/2016, ABC Corporation purchased 200 of the $1,000 face value, 8% coupon, 10-year bonds of DEF Inc. The bonds mature on 1/1/2026, and pay interest annually beginning 1/1/2017. ABC Corporation purchased the bonds to yield 11%. How much did ABC Corporation pay for the bonds?
(PV of 1 is 0.35218) (FV of 1 is 2.83942)
(PV ordinary annuity of 1 is 5.88923) (FV of ordinary annuity of 1 is 16.72201)
| a. | $175,030 | |
| b. | $164,665 | |
| c. | $221,914 | |
| d. | $214,047 |
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An Audit Is An Audit Is An Audit
Authors: Marina Peters
1st Edition
B08B37VNZ6, 979-8652328412
