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
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
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff06d33a6-22e7-458c-9fac-b19161950348%2Fc8d912da-0fd1-4c54-a035-c9575829ab3a%2Fw6h84e7_processed.jpeg&w=3840&q=75)
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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