Question
On 1/1/2021, discount firm issues: bonds with face value of $500k at an interest rate of 10% market rate = face rate, due December 31,
On 1/1/2021, discount firm issues: bonds with face value of $500k at an interest rate of 10% market rate = face rate, due December 31, 2023, interest payable annually
a. Calculate issue price of bonds (bonds issued at par value)
Same information as before but added piece of information is market rate of interest = 12%
b.Calculate issue price of bonds (bonds issued with discount)
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen and Peter Brewer
14th edition
978-007811100, 78111005, 978-0078111006
