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On January 1, assume that Comcast issues $300,000 of 15-year, 10% bonds payable for $351,876, yielding an effective semiannual interest rate of 4%. Interest is payable semiannually on June 30 and December 31.

On January 1, assume that Comcast issues $300,000 of 15-year, 10% bonds payable for $351,876, yielding an effective semiannual interest rate of 4%. Interest is payable semiannually on June 30 and December 31.

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, assume that Comcast issues $300,000 of 15-year, 10% bonds payable for $351,876, yielding an effective semiannual interest rate of 4%. Interest is payable semiannually on June 30 and December 31. Calculate the issue price of this bond. What would the bond issue price be if the semiannual effective interest rate is 6% instead of 4%?
Transcribed Image Text:On January 1, assume that Comcast issues $300,000 of 15-year, 10% bonds payable for $351,876, yielding an effective semiannual interest rate of 4%. Interest is payable semiannually on June 30 and December 31. Calculate the issue price of this bond. What would the bond issue price be if the semiannual effective interest rate is 6% instead of 4%?
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