Question
Scottie Adams Bird Supplies issued 8% bonds, dated January 1, with a face amount of $120,000 on January 1, 2021. The bonds mature in 2031
Scottie Adams Bird Supplies issued 8% bonds, dated January 1, with a face amount of $120,000 on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 6%. 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 = 3% is 15.32379 * PV of ordinary annuity of $1: n = 20; i = 3% is 14.87747 **PV of $1: n = 20; i = 3% is 0.55368
Multiple Choice
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$209,266.
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$137,854.
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$81,620.
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$143,596.
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