Olay Inc. issues $50,000, 8%, 10-year bonds payable on January 1, 2020. Calculate the selling price of the bonds under the following separate assumptions. Round your answer to the nearest whole number. Do not use negative signs with your answers. a. The bonds pay cash interest annually ($4.000) and the market rate of interest on similar bonds is 10%. b. The bonds pay cash interest annually (54.000) and the market rate of interest on similar bonds is 8%. C. The bonds pay cash interest annually ($4.000) and the market rate of interest on similar bonds is 6%. d. The bonds pay cash interest semiannually ($2.000) and the market rate of interest on similar bonds is 10%.S 47,738 x 50.000 %24 52,600 x 40.187 x e. The bonds pay cash interest semiannually ($2.000) and the market rate of interest on similar bonds is 8%, %24 42,796 x f. The bonds pay cash interest semiannually ($2.000) and the market rate of interest on similar bonds is 6%. S 46,100 x
Olay Inc. issues $50,000, 8%, 10-year bonds payable on January 1, 2020. Calculate the selling price of the bonds under the following separate assumptions. Round your answer to the nearest whole number. Do not use negative signs with your answers. a. The bonds pay cash interest annually ($4.000) and the market rate of interest on similar bonds is 10%. b. The bonds pay cash interest annually (54.000) and the market rate of interest on similar bonds is 8%. C. The bonds pay cash interest annually ($4.000) and the market rate of interest on similar bonds is 6%. d. The bonds pay cash interest semiannually ($2.000) and the market rate of interest on similar bonds is 10%.S 47,738 x 50.000 %24 52,600 x 40.187 x e. The bonds pay cash interest semiannually ($2.000) and the market rate of interest on similar bonds is 8%, %24 42,796 x f. The bonds pay cash interest semiannually ($2.000) and the market rate of interest on similar bonds is 6%. S 46,100 x
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.1AP
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