Lankspur, issues 4,350,000 of 10% bonds due in 6 years with ibterest payable at year end. The current market rate of interest for bonds of similar risk is 12%. What amount will Lankspur recieve when it us issued? Larkspur Corporation issues $630,000 of 9% bonds, due in 11 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Click here to view factor tables. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Issue price of the bonds $
Lankspur, issues 4,350,000 of 10% bonds due in 6 years with ibterest payable at year end. The current market rate of interest for bonds of similar risk is 12%. What amount will Lankspur recieve when it us issued? Larkspur Corporation issues $630,000 of 9% bonds, due in 11 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Click here to view factor tables. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Issue price of the bonds $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Lankspur, issues 4,350,000 of 10% bonds due in 6 years with ibterest payable at year end. The current market rate of
interest for bonds of similar risk is 12%. What amount will Lankspur recieve when it us issued?
C
Larkspur Corporation issues $630,000 of 9% bonds, due in 11 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%.
Click here to view factor tables.
Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to O decimal places e.g. 58,971.)
Issue price of the bonds $
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