Question
On Jan 1, ABC issues a bond with a face value of 1,000, 6% coupon, 3 year term, payable semi-annually each July 1 and Jan
On Jan 1, ABC issues a bond with a face value of 1,000, 6% coupon, 3 year term, payable semi-annually each July 1 and Jan 1. The market requires a 4% return. What is the net book value of the bond reported on the balance sheet at the end of the third year? (rounded to the nearest dollar)
a. $1,019
b. $1,000
c. $956
d. $1056
Step by Step Solution
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Answer Payment Cash Flows Present Value 2 6 PV of Cash Flows 1 30 09804 29 2 30 09612 29 ...
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
7th Edition
013213683X, 978-0132136839
