On June 30, 2019, Gaston Corporation sold $690,000 of 9% face value bonds for $654,190.11. On December 31, 2019, Gaston sold $420,000 of this same bond issue for $442,182.52. The bonds were dated January 1, 2019, pay interest semiannually on each December 31 and June 30, and are due December 31, 2026. Compute the effective yield rate on each issuance of Gaston's 9% bonds for june 30 2019 issuance for dec 31 2019 issuance
On June 30, 2019, Gaston Corporation sold $690,000 of 9% face value bonds for $654,190.11. On December 31, 2019, Gaston sold $420,000 of this same bond issue for $442,182.52. The bonds were dated January 1, 2019, pay interest semiannually on each December 31 and June 30, and are due December 31, 2026. Compute the effective yield rate on each issuance of Gaston's 9% bonds for june 30 2019 issuance for dec 31 2019 issuance
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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On June 30, 2019, Gaston Corporation sold $690,000 of 9% face
Compute the effective yield rate on each issuance of Gaston's 9% bonds
for june 30 2019 issuance
for dec 31 2019 issuance.
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