Question
On January 1, 2020, Ellison Co. issued eight-year bonds with a face value of $6,000,000 and a stated interest rate of 6%, payable annually on
On January 1, 2020, Ellison Co. issued eight-year bonds with a face value of $6,000,000 and a stated interest rate of 6%, payable annually on December 31. The bonds were sold to yield 8%. Table values are:
Present value of 1 for 8 periods at 6%........................................... .627
Present value of 1 for 8 periods at 8%........................................... .540
Present value of 1 for 16 periods at 3%......................................... .623
Present value of 1 for 16 periods at 4%......................................... .534
Present value of annuity for 8 periods at 6%................................. 6.210
Present value of annuity for 8 periods at 8%................................. 5.747
Present value of annuity for 16 periods at 3%............................... 12.561
Present value of annuity for 16 periods at 4%............................... 11.652
The present value of the interest is?
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Financial Forensics Body Of Knowledge
Authors: Darrell D. Dorrell, Gregory A. Gadawski
1st Edition
0470880856, 978-0470880852
