When the market rate of interest was 12%, Halprin Corporation issued $678,000, 11%, four-year bonds that pay interest annually. The selling price of this bond issue was _____. Use the following table, if needed. Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 0.90703 0.89000 0.87344 0.82645 0.79719 3 0.86384 0.83962 0.81630 0.75132 0.71178 4 0.82270 0.79209 0.76290 0.68301 0.63552 5 0.78353 0.74726 0.71299 0.62092 0.56743 6 0.74622 0.70496 0.66634 0.56447 0.50663 7 0.71068 0.66506 0.62275 0.51316 0.45235 8 0.67684 0.62741 0.58201 0.46651 0.40388 9 0.64461 0.59190 0.54393 0.42410 0.36061 10 0.61391 0.55840 0.50835 0.38554 0.32197   Present Value of an Annuity of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 1.85941 1.83339 1.80802 1.73554 1.69005 3 2.72325 2.67301 2.62432 2.48685 2.40183 4 3.54595 3.46511 3.38721 3.16987 3.03735 5 4.32948 4.21236 4.10020 3.79079 3.60478 6 5.07569 4.91732 4.76654 4.35526 4.11141 7 5.78637 5.58238 5.38929 4.86842 4.56376 8 6.46321 6.20979 5.97130 5.33493 4.96764 9 7.10782 6.80169 6.51523 5.75902 5.32825 10 7.72173 7.36009 7.02358 6.14457 5.65022

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

When the market rate of interest was 12%, Halprin Corporation issued $678,000, 11%, four-year bonds that pay interest annually. The selling price of this bond issue was _____. Use the following table, if needed.

Present Value of $1 at Compound Interest

Periods 5% 6% 7% 10% 12%
1 0.95238 0.94340 0.93458 0.90909 0.89286
2 0.90703 0.89000 0.87344 0.82645 0.79719
3 0.86384 0.83962 0.81630 0.75132 0.71178
4 0.82270 0.79209 0.76290 0.68301 0.63552
5 0.78353 0.74726 0.71299 0.62092 0.56743
6 0.74622 0.70496 0.66634 0.56447 0.50663
7 0.71068 0.66506 0.62275 0.51316 0.45235
8 0.67684 0.62741 0.58201 0.46651 0.40388
9 0.64461 0.59190 0.54393 0.42410 0.36061
10 0.61391 0.55840 0.50835 0.38554 0.32197

 

Present Value of an Annuity of $1 at Compound Interest

Periods 5% 6% 7% 10% 12%
1 0.95238 0.94340 0.93458 0.90909 0.89286
2 1.85941 1.83339 1.80802 1.73554 1.69005
3 2.72325 2.67301 2.62432 2.48685 2.40183
4 3.54595 3.46511 3.38721 3.16987 3.03735
5 4.32948 4.21236 4.10020 3.79079 3.60478
6 5.07569 4.91732 4.76654 4.35526 4.11141
7 5.78637 5.58238 5.38929 4.86842 4.56376
8 6.46321 6.20979 5.97130 5.33493 4.96764
9 7.10782 6.80169 6.51523 5.75902 5.32825
10 7.72173 7.36009 7.02358 6.14457 5.65022
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Bond Amortization
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education