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On 1/1/A, LVM Co. issues $200k in 10 year, 10% bonds to yield 12%. Provide LVM's net book value for the bonds on 12/31/G,

On 1/1/A, LVM Co. issues $200k in 10 year, 10% bonds to yield 12%. Provide LVM's net book value for the bonds on 12/31/G, after the 7th coupon payment, assuming the market rate of interest on that date is 14% (note: you do not need to prepare an amortization table). [190392.67] In year B, George Co. issues $100,000 in 10% bonds to yield 8%. Although the bonds have a bond date of July 1, year A, and don't mature for 10 years, George Co. repurchases the bonds on 12/31/F, their FYE, incurring $100 in brokerage fees. a. Calculate the net book value of the bonds on 12/31/F, excluding Interest Payable, immediately prior to repurchase_ [107304.84] b. Calculate the market value of the bonds on 12/31/F, assuming the bonds are currently priced in the market to yield 12% (don't forget to include accrued interest, but not broker fees) ['partial' method: 98357.88. 'real' method: 98325.75] c. Provide the 12/31/F gain/loss (indicate which) to repurchase and extinguish the bonds ['partial: 13846.96 gain. 'real:' 13879.09 gain.]

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