Question
On January 1, 2016, Trueman Corp. issued $600,000 of 20-year, 11% bonds for $554,860, yielding a market (yield) rate of 12%. Interest is payable semiannually
On January 1, 2016, Trueman Corp. issued $600,000 of 20-year, 11% bonds for $554,860, yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30 and December 31.
Required
a. Confirm the bond issue price.
(Use a calculator or Excel for your calculations. Round your answers to the nearest dollar.)
Present value of principal repayment$Answer
Present value of interest payments$Answer
Selling price of bonds$Answer
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Cornerstones of Managerial Accounting
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
2nd Canadian edition
978-0176721237, 978-0176530884
