Question
On January 1, 2016, Bradley Recreational Products issued $130,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were
On January 1, 2016, Bradley Recreational Products issued $130,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $125,799 to yield an annual return of 10%.
| 1. Assuming the market rate is still 10%, what price would a second investor pay the first investor on June 30, 2018, for $13,000 of the bonds? Price of bonds __________? |
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Financial Accounting A Critical Approach
Authors: John Friedlan
3rd Edition
0070967601, 978-0070967601
