On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of $112 million. The bonds mature on December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Determine the price of the bonds on December 31, 2021, assuming that the market rate of interest for similar bonds was 7%. (Round your final answers to nearest whole dollar amount.) Table values are based on: Cash Flow Interest Principal Price of bonds Amount Present Value

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of $112 million. The bonds mature
on December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. (FV of $1. PV of $1. EVA of $1. PVA of $1.
FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Determine the price of the bonds on December 31, 2021, assuming that the market rate of interest for similar bonds was 7%. (Round
your final answers to nearest whole dollar amount.)
Table values are based on:
n
Cash Flow
Interest
Principal
Price of bonds
Amount
Present Value
Transcribed Image Text:On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of $112 million. The bonds mature on December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Determine the price of the bonds on December 31, 2021, assuming that the market rate of interest for similar bonds was 7%. (Round your final answers to nearest whole dollar amount.) Table values are based on: n Cash Flow Interest Principal Price of bonds Amount Present Value
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