The following information pertains to BARU NUTS Company's issuance of bonds on July 1, 2021:WHAT SHOULD BE THE ISSUE PRICE OF THE BONDS?(Solution must be in good accounting form. Excel format would be good for a good accounting form! Thanks a lot, Tutor! I hope you can help me) P 1,000,000 Interest paymentsEffective yieldFace amountJuly 1 and January 1Term10 years12%Stated interest rate8%4%6%8%12%PV of an ordinary annuity of 1 for 10 periodsPV of an ordinary annuity of 1 for 20 periodsPV of a single amount for 10 periodsPV of a single amount for 20 periods8.117.366.716.1413.5911.479.828.510.680.560.460.320.460.310.210.31

Interest=Face amount×Stated interest rate2=1,000,000×8%2=40,000

The following information pertains to BARU NUTS Company's issuance of bonds on July 1, 2021: WHAT SHOULD BE THE ISSUE PRICE OF THE BONDS? (Solution must be in good accounting form. Excel format would be good for a good accounting form! Thanks a lot, Tutor! I hope you can help me)

The following information pertains to BARU NUTS Company's issuance of bonds on July 1, 2021: WHAT SHOULD BE THE ISSUE PRICE OF THE BONDS? (Solution must be in good accounting form. Excel format would be good for a good accounting form! Thanks a lot, Tutor! I hope you can help me)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following information pertains to BARU NUTS Company's issuance of bonds on July 1, 2021:

WHAT SHOULD BE THE ISSUE PRICE OF THE BONDS?

(Solution must be in good accounting form. Excel format would be good for a good accounting form! Thanks a lot, Tutor! I hope you can help me)

P 1,000,000 Interest payments
Effective yield
Face amount
July 1 and January 1
Term
10 years
12%
Stated interest rate
8%
4%
6%
8%
12%
PV of an ordinary annuity of 1 for 10 periods
PV of an ordinary annuity of 1 for 20 periods
PV of a single amount for 10 periods
PV of a single amount for 20 periods
8.11
7.36
6.71
6.14
13.59
11.47
9.82
8.51
0.68
0.56
0.46
0.32
0.46
0.31
0.21
0.31

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