Eight years ago, Over-the-Top Trampolines issued a 15- year bond with a $1,000 par value and a 6 percent coupon rate (interest is paid annually). Today the going rate of interest on similar bonds is 6 percent. What is the bond's current value?

Eight years ago, Over-the-Top Trampolines issued a 15- year bond with a $1,000 par value and a 6 percent coupon rate (interest is paid annually). Today the going rate of interest on similar bonds is 6 percent. What is the bond's current value?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 13Q: A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market...

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Eight years ago, Over-the-Top Trampolines issued a 15-
year bond with a $1,000 par value and a 6 percent
coupon rate (interest is paid annually). Today the going
rate of interest on similar bonds is 6 percent.
What is the bond's current value?

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