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P10-4 (Algo) Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium LO 10-2, 10- 4, 10-5 Rosh Corporation is planning to issue bonds with a face value of $820,000 and a coupon rate of 8 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to nearest whole dollar amount. Required: Compute the issue (sales) price on January 1 of this year for each of the following independent cases: 1. Case A: Market interest rate (annual): 8 percent. 2. Case B: Market interest rate (annual): 6 percent. 3. Case C: Market interest rate (annual): 10 percent. Answer is complete but not entirely correct. a. Case A b. Case B c. Case C Issue Price $ $ $ 820,000✔ 876,825 X 768,012 X

P10-4 (Algo) Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium LO 10-2, 10- 4, 10-5 Rosh Corporation is planning to issue bonds with a face value of $820,000 and a coupon rate of 8 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to nearest whole dollar amount. Required: Compute the issue (sales) price on January 1 of this year for each of the following independent cases: 1. Case A: Market interest rate (annual): 8 percent. 2. Case B: Market interest rate (annual): 6 percent. 3. Case C: Market interest rate (annual): 10 percent. Answer is complete but not entirely correct. a. Case A b. Case B c. Case C Issue Price $ $ $ 820,000✔ 876,825 X 768,012 X

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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P10-4 (Algo) Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium LO 10-2, 10- 4, 10-5 Rosh Corporation is planning to issue bonds with a face value of $820,000 and a coupon rate of 8 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to nearest whole dollar amount. Required: Compute the issue (sales) price on January 1 of this year for each of the following independent cases: 1. Case A: Market interest rate (annual): 8 percent. 2. Case B: Market interest rate (annual): 6 percent. 3. Case C: Market interest rate (annual): 10 percent. Answer is complete but not entirely correct. a. Case A b. Case B c. Case C Issue Price $ 820,000 $ $ 876,825 X 768,012 X
Transcribed Image Text:P10-4 (Algo) Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium LO 10-2, 10- 4, 10-5 Rosh Corporation is planning to issue bonds with a face value of $820,000 and a coupon rate of 8 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to nearest whole dollar amount. Required: Compute the issue (sales) price on January 1 of this year for each of the following independent cases: 1. Case A: Market interest rate (annual): 8 percent. 2. Case B: Market interest rate (annual): 6 percent. 3. Case C: Market interest rate (annual): 10 percent. Answer is complete but not entirely correct. a. Case A b. Case B c. Case C Issue Price $ 820,000 $ $ 876,825 X 768,012 X
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