What is the present value of a $2,000 bond that pays a semi-annual coupon payment of $80 at the end of each six-month period for the next three years and then matures at the end of year 3? Assume the market rate of interest is 10% per year (5% per period).

What is the present value of a $2,000 bond that pays a semi-annual coupon payment of $80 at the end of each six-month period for the next three years and then matures at the end of year 3? Assume the market rate of interest is 10% per year (5% per period).

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 5MC

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I need answer of this question solution general accounting

What is the present value of a $2,000 bond that pays a semi-annual
coupon payment of $80 at the end of each six-month period for the
next three years and then matures at the end of year 3? Assume the
market rate of interest is 10% per year (5% per period).

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