NJN, Inc.issues bonds due in 15 years with a coupon/stated interest rate of 7% and a total face value of $400,000. Interest payments are made semi-annually. The market rate for this type of bond is 6%. What is the issue price of the bond (rounded to nearest whole dollar? TVM Tables link (will open in a new window)(opens in new window) Select one: a. $452,259 b. $302,878 c. $400,000 d. $438,849 e. $439,201 Clear my choice
NJN, Inc.issues bonds due in 15 years with a coupon/stated interest rate of 7% and a total face value of $400,000. Interest payments are made semi-annually. The market rate for this type of bond is 6%. What is the issue price of the bond (rounded to nearest whole dollar? TVM Tables link (will open in a new window)(opens in new window) Select one: a. $452,259 b. $302,878 c. $400,000 d. $438,849 e. $439,201 Clear my choice
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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NJN, Inc.issues bonds due in 15 years with a coupon/stated interest rate of 7% and a total face value of $400,000. Interest payments are made semi-annually. The market rate for this type of bond is 6%.
What is the issue price of the bond (rounded to nearest whole dollar?
TVM Tables link (will open in a new window)(opens in new window)
Select one:
a. $452,259
b. $302,878
c. $400,000
d. $438,849
e. $439,201
Clear my choice
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