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On January 1, 2014, Broker Corp. issued $3,200,000 par value 10%, 12 year bonds which pay interest each December 31. If the market rate of
On January 1, 2014, Broker Corp. issued $3,200,000 par value 10%, 12 year bonds which pay interest each December 31. If the market rate of interest was 12%, what was the issue price of the bonds? (The present value factor for $1 in 12 periods at 10% is 0.3186 and at 12% is 0.2567. The present value of an annuity of $1 factor for 12 periods at 10% is 6.8137 and at 12% is 6.1944.) |
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