Rosh Corporation is planning to issue bonds with a face value of $860,000 and a coupon rate of 10 percent The bonds mature in fouryears and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year (EV of $1.PV of $1. FVA of $1. and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to nearestwhole dollar amount.)Required:Compute the issue (sales) price on January 1 of this year for each of the following independent cases:a. Case A: Market interest rate: 10 percent.Insue priceb. Case B: Market Interest rate: 8 percentapd anssc. Case C: Market interest rate: 12 percent.IPoue prce

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Business

Accounting

Compute the issue (sales) price on January 1 of this year for each of the following independent cases:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Rosh Corporation is planning to issue bonds with a face value of $860,000 and a coupon rate of 10 percent The bonds mature in four
years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year (EV of $1.
PV of $1. FVA of $1. and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to nearest
whole dollar amount.)
Required:
Compute the issue (sales) price on January 1 of this year for each of the following independent cases:
a. Case A: Market interest rate: 10 percent.
Insue price
b. Case B: Market Interest rate: 8 percent
apd anss
c. Case C: Market interest rate: 12 percent.
IPoue prce

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