On June 30, 2019, Gaston Corporation sold $890,000 of 11% face value bonds for $846,780.44. On December 31, 2019, Gaston sold $470,000 of this same bond issue for $493,261.83. The bonds were dated January 1, 2019, pay interest semiannually on each December 31 and June 30, and are due December 31, 2026. Required: Compute the effective yield rate on each issuance of Gaston's 11% bonds. Click here to access the tables to use with this problem. Round your answers to the nearest whole percentage. June 30, 2019 issuance: % December 31, 2019 issuance: %
On June 30, 2019, Gaston Corporation sold $890,000 of 11% face value bonds for $846,780.44. On December 31, 2019, Gaston sold $470,000 of this same bond issue for $493,261.83. The bonds were dated January 1, 2019, pay interest semiannually on each December 31 and June 30, and are due December 31, 2026. Required: Compute the effective yield rate on each issuance of Gaston's 11% bonds. Click here to access the tables to use with this problem. Round your answers to the nearest whole percentage. June 30, 2019 issuance: % December 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
Problem 1PS
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On June 30, 2019, Gaston Corporation sold $890,000 of 11% face
June 30, 2019 issuance: %
December 31, 2019 issuance: %
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