Reddy's LLC has in issue 14% bonds with par value OMR180,000 and redemption value OMR 80,000, with interest payable half yearly. The cost of debt on the bonds is 6% annually and 3% half yearly. The bonds are redeemable on 30 June 2026 and it is now 1 July 2021. Calculate the market value of the bonds. a)OMR 82551 b)none of them c)OMR 137.921 d)OMR 166,998

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Reddy's LLC has in issue 14% bonds with par value
OMR180,000 and redemption value OMR 80,000,
with interest payable half yearly. The cost of debt on
the bonds is 6% annually and 3% half yearly. The
bonds are redeemable on 30 June 2026 and it is now
1 July 2021. Calculate the market value of the
bonds.
a)OMR 82551
b)none of them
c)OMR 137.921
d)OMR 166,998
Transcribed Image Text:Reddy's LLC has in issue 14% bonds with par value OMR180,000 and redemption value OMR 80,000, with interest payable half yearly. The cost of debt on the bonds is 6% annually and 3% half yearly. The bonds are redeemable on 30 June 2026 and it is now 1 July 2021. Calculate the market value of the bonds. a)OMR 82551 b)none of them c)OMR 137.921 d)OMR 166,998
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