Present Value for the question listed below, while the issue price is correct, I need help understanding why the PVIAF was raised to ^-20 and the PVF was ^20. January 1, 2019, Drennen Inc. issued $5 million face amount of 10-year, 14% stated rate bonds when market interest rates were 12%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2028. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) I appreciate your assistance, thank you.
Present Value for the question listed below, while the issue price is correct, I need help understanding why the PVIAF was raised to ^-20 and the PVF was ^20. January 1, 2019, Drennen Inc. issued $5 million face amount of 10-year, 14% stated rate bonds when market interest rates were 12%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2028. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) I appreciate your assistance, thank you.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...
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Present Value for the question listed below, while the issue price is correct, I need help understanding why the PVIAF was raised to ^-20 and the PVF was ^20. January 1, 2019, Drennen Inc. issued $5 million face amount of 10-year, 14% stated rate bonds when market interest rates were 12%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2028. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) I appreciate your assistance, thank you.
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Bond is borrowing security that is issued by the company to raise funds from the market by making an agreement to repay the sum at maturity with periodic interest on it.
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