Please don't give image format Table 16-2 Interest rates and bond prices (face value is $1,000 and annualcoupon rate is 12%)B60A12 Years to Maturity314155257DERate in the Market (%)-Annual Yield to Maturity*8%10%12%14%16%$1,037.72$1,000.00 $981.92 $964.33$1,018.59$1,153.72 $1,000.00 $875.91 $774.84$1,345.84$1,429.64 $1,182.56$1,000.00 $861.99$755.33FGH=+PV(F2/2,A5*2,-120/2,-1000)+PV(rate,nper,pmt, [fv]) Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 12percent yield. After 10 years the bonds have been upgraded to Aa2. Such bonds arecurrently yielding 10 percent to maturity. Use Table 16-2.Determine the price of the bonds with 15 years remaining to maturity.> Answer is complete but not entirely correct.Price of the bonds$ 1,153.72

Bond is referred to long-term borrowed by corporations, organizations, and the government for the…

Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 12 percent yield. After 10 years the bonds have been upgraded to Aa2. Such bonds are currently yielding 10 percent to maturity. Use Table 16-2. Determine the price of the bonds with 15 years remaining to maturity. > Answer is complete but not entirely correct. Price of the bonds $ 1,153.72 X

Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 12 percent yield. After 10 years the bonds have been upgraded to Aa2. Such bonds are currently yielding 10 percent to maturity. Use Table 16-2. Determine the price of the bonds with 15 years remaining to maturity. > Answer is complete but not entirely correct. Price of the bonds $ 1,153.72 X

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2PB: Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity...

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Concept explainers

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.

Question

Please don't give image format

Table 16-2 Interest rates and bond prices (face value is $1,000 and annual
coupon rate is 12%)
B
60
A
1
2 Years to Maturity
3
1
4
15
5
25
7
D
E
Rate in the Market (%)-Annual Yield to Maturity*
8%
10%
12%
14%
16%
$1,037.72
$1,000.00 $981.92 $964.33
$1,018.59
$1,153.72 $1,000.00 $875.91 $774.84
$1,345.84
$1,429.64 $1,182.56
$1,000.00 $861.99
$755.33
F
G
H
=+PV(F2/2,A5*2,-120/2,-1000)
+PV(rate,nper,pmt, [fv])

Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 12
percent yield. After 10 years the bonds have been upgraded to Aa2. Such bonds are
currently yielding 10 percent to maturity. Use Table 16-2.
Determine the price of the bonds with 15 years remaining to maturity.
> Answer is complete but not entirely correct.
Price of the bonds
$ 1,153.72

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