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Scottie Adams Bird Supplies issued 12% bonds, dated January 1, with a face amount of $170,000 on January 1, 2021. The bonds mature in 2031
Scottie Adams Bird Supplies issued 12% bonds, dated January 1, with a face amount of $170,000 on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 10%. Interest is paid semiannually on June 30 and December 31. What is the price of the bonds at January 1, 2021? Some relevant and irrelevant present value factors: * PV of annuity due of $1: n = 20; i = 5% is 13.08532 * PV of ordinary annuity of $1: n = 20; i = 5% is 12.46221 **PV of $1: n = 20; i = 5% is 0.37689
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