Question
On January 2, 2023, Pasta LaVista Ltd. issued $4,000,000 of 8.5 percent, 5-year bonds when the market interest rate was 10 percent. Omni Industries pays
On January 2, 2023, Pasta LaVista Ltd. issued $4,000,000 of 8.5 percent, 5-year bonds when the market interest rate was 10 percent. Omni Industries pays interest semiannually on June 30th and December 31st . a) What is the issue price of the bond? Enter number only b) What is the amount of discount or premium (enter for discount and + for premium; do not use $ or commas) c) What is the amount of interest Pasta LaVista must repay every June 30th and Dec 31? d) What is the principal amount Pasta LaVista must repay at maturity?
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Auditing Theory And Practice
Authors: Arun Kumar & Rachana Sharma
1st Edition
8171567207, 978-8171567201
