5 Brief Exercise 9-20 (Algo) Calculate the issue price of bonds (LO9-7)Ultimate Butter Popcom issues 6%, 20-year bonds with a face amount of $53,000. The market interest rate for bonds of similar riskand maturity is 6%. Interest is paid semiannually.At what price will the bonds issue? (FV of $1, PV of $1. EVA of $1, and PVA of S1) (Use appropriate factor(s) from the tables provided.Do not round interest rate factors. Round "Market interest rate" to 1 decimal place.)Bond CharacteristicsFace amountInterest paymentMarket interest rateNumber of periodsIssue price$$Amount53,0001,590

Issue price of bonds would be present value of interest annuity & maturity amount at market rate…

Ultimate Butter Popcom issues 6%, 20-year bonds with a face amount of $53,000. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price will the bonds issue? (EV of $1. PV of $1. EVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round "Market interest rate" to 1 decimal place.) Bond Characteristics Face amount Interest payment Market interest rate Number of periods Issue price Amount $ $ 53,000 1,590

Ultimate Butter Popcom issues 6%, 20-year bonds with a face amount of $53,000. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price will the bonds issue? (EV of $1. PV of $1. EVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round "Market interest rate" to 1 decimal place.) Bond Characteristics Face amount Interest payment Market interest rate Number of periods Issue price Amount $ $ 53,000 1,590

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter10: Long-term Liabilities

Section: Chapter Questions

Problem 10.3E: Issue Price The following terms relate to independent bond issues: 500 bonds; $1,000 face value; 8%...

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