On January 1, 2016, Trueman Corp. issued $600,000 of 20-year, 11% bonds for $554,860, yielding a market
Fantastic news! We've Found the answer you've been seeking!
Question:
On January 1, 2016, Trueman Corp. issued $600,000 of 20-year, 11% bonds for $554,860, yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30 and December 31.
Required
a. Confirm the bond issue price.
(Use a calculator or Excel for your calculations. Round your answers to the nearest dollar.)
Present value of principal repayment$Answer
Present value of interest payments$Answer
Selling price of bonds$Answer
Expert Answer:
Posted Date:
