On July 1, 2023, JMM Limited issued bonds with a face value of $930,000 due in 20 years, paying interest at a face rate of 8% on January 1 and July 1 each year. The bonds were issued to yield 10%. The company's year-end was September 30. The company used the effective interest method of amortization. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1. (a) Your answer is partially correct. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the premium or discount on the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.) Discount on bond $
On July 1, 2023, JMM Limited issued bonds with a face value of $930,000 due in 20 years, paying interest at a face rate of 8% on January 1 and July 1 each year. The bonds were issued to yield 10%. The company's year-end was September 30. The company used the effective interest method of amortization. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1. (a) Your answer is partially correct. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the premium or discount on the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.) Discount on bond $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On July 1, 2023, JMM Limited issued bonds with a face value of $930,000 due in 20 years, paying interest at a face rate of 8% on
January 1 and July 1 each year. The bonds were issued to yield 10%. The company's year-end was September 30. The company used
the effective interest method of amortization.
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1.
(a)
-
Your answer is partially correct.
Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the premium or discount on the bonds. (Round
factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.)
Discount
on bond
$
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