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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please help me solve this and explain the steps. i am not sure why my answer is incorrect
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F99d6c510-5b8c-4c17-ac3a-87bddda960ff%2F66f79bc1-6d29-4b87-9500-ee79d3e4234e%2F5fk4fmg_processed.png&w=3840&q=75)
Transcribed Image Text: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
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