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Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued $27,000,000 of three-year, 9% bonds, with interest payable semiannually, at a
Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued $27,000,000 of three-year, 9% bonds, with interest payable semiannually, at a market (effective) interest rate of 10%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
Present value of bonds payable; discount DATA Face amount of bonds $27,000,000 Contract rate of interest 9% Term of bonds, years 3 Market rate of interest 10% lnterest payment Semiannual Using formulas and cell references, perform the required analysis, and input your answer into the Amount column. Transfer the numeric result for the green entry cell (B13) into the appropriate field in CNOWv2 for grading. Amount Formula PV of bondsStep by Step Solution
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