438作答3. On July 1, 2000, MB corp. sells a 5,000,000 issue of 6% bonds paying couponson July 1 and December 1. The issue is redeemable in Equal instalments at theend of each year for 8 years. On December 1, 2004, how much is the value of alloutstanding bonds to yield 5%?作答作答

Bonds are a type of security that can be sold to investors by governments and enterprises to obtain…

Answered: 3. On July 1, 2000, MB corp. sells a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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40) Scottie Adams Bird Supplies issued 15% bonds, dated January 1, with a face amount of $250,000 on January 1, 2024. The bonds mature in 2033 (10 years). For bonds of similar risk and maturity the market yield is 14%. Interest is paid semiannually on June 30 and December 31. What is the price of the bonds on January 1, 20247 Some relevant and irrelevant present value factors: A) $236,141 B) $291,210 C) $263,243 D) $461,881
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3. On July 1, 2000, MB corp. sells a 5,000,000 issue of 6% bonds paying coupons on July 1 and December 1. The issue is redeemable in Equal instalments at the end of each year for 8 years. On December 1, 2004, how much is the value of all outstanding bonds to yield 5%?