Question
On January 1, 2012, Trueman Corporation issued $500,000 of 20-year, 11% bonds for $462,384, yielding a market (yield) rate of 12%. Interest is payable semiannually
On January 1, 2012, Trueman Corporation issued $500,000 of 20-year, 11% bonds for $462,384, yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30 and December 31. (a) Confirm the bond issue price.(Use a financial calculator or Excel to compute. Round answers to the nearest whole number.)
| Present value of principal repayment | ? |
| Present value of interest payments | ? |
| Selling price of bonds | =$ 462,384 |
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
18th edition
1292162406, 978-1292162409
