Issue Price The following terms relate to independent bond issues: a. 670 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments b. 670 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments c. 800 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments d. 1,870 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar. Situation a. b. C. d. Selling Price of the Bond Issue $ $ $ $
Issue Price The following terms relate to independent bond issues: a. 670 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments b. 670 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments c. 800 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments d. 1,870 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar. Situation a. b. C. d. Selling Price of the Bond Issue $ $ $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Oo.191.
Subject :- Account
Transcribed Image Text:Issue Price
The following terms relate to independent bond issues:
a. 670 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
b. 670 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
c. 800 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
d. 1,870 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments
Use the appropriate present value table:
PV of $1 and PV of Annuity of $1
Required:
Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the
nearest dollar.
Situation
a.
b.
C.
d.
Selling Price of the Bond Issue
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