Two bonds have par values of $1,000. Bond A is a 5% quarterly-pay, 15-year bond priced to yield 8% as an annual rate; the other (Bond B) is a 7.5% quarterly-pay, 20-year bond priced to yield 5.86% as an annual rate. The values of these two bonds would be: Bond A Bond B A. $739.29 $1,174.03 B. $740.61 $1,172.04 C. $739.29 $1,192.04

Two bonds have par values of $1,000. Bond A is a 5% quarterly-pay, 15-year bond priced to yield 8% as an annual rate; the other (Bond B) is a 7.5% quarterly-pay, 20-year bond priced to yield 5.86% as an annual rate. The values of these two bonds would be: Bond A Bond B A. $739.29 $1,174.03 B. $740.61 $1,172.04 C. $739.29 $1,192.04

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter22: Corporations: Bonds

Section: Chapter Questions

Problem 3MC

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