Question
Tavinona Company issued 1,000; $1,000 bonds for a bond issue of $1,000,000. The bonds were issued for a 10-year term with a coupon rate of
Tavinona Company issued 1,000; $1,000 bonds for a bond issue of $1,000,000. The bonds were issued for a 10-year term with a coupon rate of 4.5%. The current market rate is 3.5%. Calculate the present (market) value of one bond, then calculate the amount of the bond premium.
Multiple Choice
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$1,473.90; $473.90
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$1,049.09; $49.09
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$1,090.36; $90.36
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$1,083.76; $83.76
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Financial Accounting Theory
Authors: Craig Deegan
2nd Edition
0077126734, 978-0077126735
