Question
On January 1, 2016, the Washington Group issued $100,000 par value 5%, five-year bonds when the market rate of interest was 8%. Interest is payable
On January 1, 2016, the Washington Group issued $100,000 par value 5%, five-year bonds when the market rate of interest was 8%. Interest is payable annually on December 31. The following present value information is available:
|
| 5% | 8% |
| Present value of $1 (n = 5) | 0.78353 | 0.68058 |
| Present value of an ordinary annuity (n = 5) | 4.32948 | 3.99271 |
What amount is the value of the net bonds payable at the end of 2016?
- A. $88,022
- B. $90,064
- C. $100,000
- D. $110,000
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Fundamentals Of Strategy
Authors: Gerry Johnson, Kevan Scholes, Richard Whittington
2nd Edition
0273713108, 9780273713104
