On January 1, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%. Interest is to be paid semiannually. Prepare calculations to prove that the selling price of the bonds is $138,959.90. Click here to access the tables to use with this exercise. Round your answers to two decimal places, if necessary. Present value of principal: $ Present value of interest: Selling price

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 2.1C
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B 6-1 Homework: Chapter 21 x
* CengageNOWv2 | Online te. X
6 33a032c1-8e87-4e70-bad0-X
akeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3false
26
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Bond Issue
On January 1, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%. Interest is to be paid semiannually.
Prepare calculations to prove that the selling price of the bonds is $138,959.90. Click here to access the tables to use with this exercise. Round your
answers to two decimal places, if necessary.
Present value of principal: $
Present value of interest:
Selling price
Next
Chodc My Work
Transcribed Image Text:B 6-1 Homework: Chapter 21 x * CengageNOWv2 | Online te. X 6 33a032c1-8e87-4e70-bad0-X akeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3false 26 eBook Bond Issue On January 1, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%. Interest is to be paid semiannually. Prepare calculations to prove that the selling price of the bonds is $138,959.90. Click here to access the tables to use with this exercise. Round your answers to two decimal places, if necessary. Present value of principal: $ Present value of interest: Selling price Next Chodc My Work
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