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Please give accurate answers to the parts. Thanks! Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and December 31.
Please give accurate answers to the parts. Thanks!
Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and December 31. The bonds have a $40,000 par value and an annual contract rate of 10%, and they mature in 10 years. tbeBI, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your "Present Value" answers to the nearest whole dollar amount.) Required: Consider each of the following three separate situations. I. The market rate at the date of issuance is 8%. (a) Complete the below table to determine the bonds' issue price on January 1 (b) Prepare the journal entry to record their issuance 2. The market rate at the date of issuance is 10%. (a) Complete the below table to determine the bonds' issue price on January 1 (b) Prepare the journal entry to record their issuance 3. The market rate at the date of issuance is 12%. (a) Complete the below table to determine the bonds' issue price on January 1 (b) Prepare the journal entry to record their issuance Complete this question by entering your answers in the tabs below Req 1A Req 1B Req 2A Req 2B Req 3A Req 3B Complete the below table to determine the bonds' issue price on January 1, if the market rate at the date of issuance is 896. Table values are based on: Flow Table Value Amou nt Present Value Par (maturity) value Interest (annuity) Price of bonds Req 1A Req 1B >Step by Step Solution
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