Question
On June 30, 2019, Gaston Corporation sold $900,000 of 9% face value bonds for $853,291.45. On December 31, 2019, Gaston sold $530,000 of this same
On June 30, 2019, Gaston Corporation sold $900,000 of 9% face value bonds for $853,291.45. On December 31, 2019, Gaston sold $530,000 of this same bond issue for $557,992.23. The bonds were dated January 1, 2019, pay interest semiannually on each December 31 and June 30, and are due December 31, 2026.
Required: Compute the effective yield rate on each issuance of Gaston's 9% bonds. Click here to access the tables to use with this problem. Round your answers to the nearest whole percentage.
June 30, 2019 issuance: _________%
December 31, 2019 issuance: _________ %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started