The following terms relate to independent bond issues: a. 520 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments b. 520 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments c. 840 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments d. 2,130 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answ Situati TRELLA
The following terms relate to independent bond issues: a. 520 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments b. 520 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments c. 840 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments d. 2,130 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answ Situati TRELLA
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Subject:- Account
Transcribed Image Text:Issue Price
The
following terms relate to independent bond issues:
a. 520 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
b. 520 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
c. 840 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
d. 2,130 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments
Use the appropriate present value table:
PV of $1 and PV of Annuity of $1
Required:
Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar.
Situation Selling Price of the Bond Issue
480,574 ✓
8
$
$
a.
b.
C.
d.
479,845 ✔
488,520 X
569,178 X
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