Required information [The following information applies to the questions displayed below.] Cron Corporation is planning to issue bonds with a face value of $850,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Cron uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. What was the issue price on January 1 of this year? Note: Round your final answer to nearest whole dollar amount. Answer is complete but not entirely correct. Issue price $ 105,971 X

Required information [The following information applies to the questions displayed below.] Cron Corporation is planning to issue bonds with a face value of $850,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Cron uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. What was the issue price on January 1 of this year? Note: Round your final answer to nearest whole dollar amount. Answer is complete but not entirely correct. Issue price $ 105,971 X

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1RE

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Required information. [The following information applies to the questions displayed below.] PowerTap Utilities is planning to issue bonds with a face value of $2,600,000 and a coupon rate of 9 percent. The bonds mature in 9-years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 10 percent. (EV of $1. PV of $1. EVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. What was the issue price on January 1 of this year? Note: Round your final answer to nearest whole dollar amount. Issue price
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