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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Question
Transcribed Image Text:Learning Task 2:
Direction: Read the problem and answer the following questions that follow.
On January 1, 2015, ABC Inc. issued 3,000,000 bonds with a coupon rate of 8% maturing in
4 years. The interest is paid annually, and the market interest rate at the date of issue was
11%.
Questions:
1. What is the issue price of the bond?
2. Prepare the 4-year amortization schedule for the bond.
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