Hillside Excursions issues bonds due in 15 years with a stated interest rate of 9% and a face value of $150,000. Interest payments are made semi-annually. The market rate for this type of bond is 6%. Using a financial calculator or Excel, calculate the issue price of the bonds. Multiple Choice $194,101. $147,421. $150,000. $168,386.
Hillside Excursions issues bonds due in 15 years with a stated interest rate of 9% and a face value of $150,000. Interest payments are made semi-annually. The market rate for this type of bond is 6%. Using a financial calculator or Excel, calculate the issue price of the bonds. Multiple Choice $194,101. $147,421. $150,000. $168,386.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hillside Excursions issues bonds due in 15 years with a stated interest rate of 9% and a face value of $150,000. Interest payments are made semi-annually. The market rate for this type of bond is 6%. Using a financial calculator or Excel, calculate the issue price of the bonds.
Multiple Choice
$194,101.
$147,421.
$150,000.
$168,386.
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