Question
On January 1, 2018, Morton Sales Co. issued zero-coupon bonds with a face value of $6.5 million for cash. The bonds mature in 12 years
On January 1, 2018, Morton Sales Co. issued zero-coupon bonds with a face value of $6.5 million for cash. The bonds mature in 12 years and were issued at a price of $2,886,065. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required: What was the annual effective interest rate in the market when the bonds were issued?
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Financial Accounting For Decision Makers
Authors: Dr Peter Atrill, Eddie Mclaney, Sin Autor
5th Edition
1405888210, 9781405888219
