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On January 1, 2025, Carla Vista Co. issued ten-year bonds with a face value of $3,875,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 10 periods at 10% 0.38554 Present value of 1 for 10 periods at 12% 0.32197 Present value of 1 for 20 periods at 5% 0.37689 Present value of 1 for 20 periods at 6% 0.31180 Present value of annuity for 10 periods at 10% 6.14457 Present value of annuity for 10 periods at 12% 5.65022 Present value of annuity for 20 periods at 5% 12.46221 Present value of annuity for 20 periods at 6% 11.46992 (a) Calculate the issue price of the bonds. (Round final answer to O decimal places, eg. 25,000) Issue price of bond $

On January 1, 2025, Carla Vista Co. issued ten-year bonds with a face value of $3,875,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 10 periods at 10% 0.38554 Present value of 1 for 10 periods at 12% 0.32197 Present value of 1 for 20 periods at 5% 0.37689 Present value of 1 for 20 periods at 6% 0.31180 Present value of annuity for 10 periods at 10% 6.14457 Present value of annuity for 10 periods at 12% 5.65022 Present value of annuity for 20 periods at 5% 12.46221 Present value of annuity for 20 periods at 6% 11.46992 (a) Calculate the issue price of the bonds. (Round final answer to O decimal places, eg. 25,000) Issue price of bond $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2025, Carla Vista Co. issued ten-year bonds with a face value of $3,875,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 10 periods at 10% 0.38554 Present value of 1 for 10 periods at 12% 0.32197 Present value of 1 for 20 periods at 5% 0.37689 Present value of 1 for 20 periods at 6% 0.31180 Present value of annuity for 10 periods at 10% 6.14457 Present value of annuity for 10 periods at 12% 5.65022 Present value of annuity for 20 periods at 5% 12.46221 Present value of annuity for 20 periods at 6% 11.46992 (a) Calculate the issue price of the bonds. (Round final answer to O decimal places, eg. 25,000) Issue price of bond $
Transcribed Image Text:On January 1, 2025, Carla Vista Co. issued ten-year bonds with a face value of $3,875,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 10 periods at 10% 0.38554 Present value of 1 for 10 periods at 12% 0.32197 Present value of 1 for 20 periods at 5% 0.37689 Present value of 1 for 20 periods at 6% 0.31180 Present value of annuity for 10 periods at 10% 6.14457 Present value of annuity for 10 periods at 12% 5.65022 Present value of annuity for 20 periods at 5% 12.46221 Present value of annuity for 20 periods at 6% 11.46992 (a) Calculate the issue price of the bonds. (Round final answer to O decimal places, eg. 25,000) Issue price of bond $
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