The Victoria Telephone Company has a $1,000 par value bond outstanding that pays 18 percent interest with annual payments. The current yield to maturity on such bonds in the market is 19 percent. Use Appendix B and Appendix D Compute the price of the bonds for these maturity dates: (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. 25 Year b. 18 Year c. 1 Year Price of the bond $948.05 $ 949.67 $991.60 000

The Victoria Telephone Company has a $1,000 par value bond outstanding that pays 18 percent interest with annual payments. The current yield to maturity on such bonds in the market is 19 percent. Use Appendix B and Appendix D Compute the price of the bonds for these maturity dates: (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. 25 Year b. 18 Year c. 1 Year Price of the bond $948.05 $ 949.67 $991.60 000

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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