Use the paper copy of the Present Value Tables, provided on Canvas, to answer the following questionWilliams Company issued 200 of its B, $1,000, 5-year bonds on January 1, 2023. On that date, the market rate of interest was 12%. The bonds pay interest quarterly How muchwould an investor pay for this bond?Select oneO a $150,000Ob $170,308O C$150,066d $114129e $107.973O PreviousSave AnswersNext Oet SelflePerem2023-10Screensh2023-104reenshot03.03 PMeenshot00.32 PM

Issue price of bonds is the present value of the interest annuity & maturity amount at market…

Answered: Williams Company issued 200 of as 8…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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BlueLtd. Issued a $1,164,000, 10-year bond dated January 1, 2020. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Blue followed IFRS. Using 1 factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the tactor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITYOF 1 (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answers to 0 decimal places, e.g. 5,275.) Proceeds from sale of bond : on bond Prepare the journal entries for above transactions. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the…
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Williams Company issued 200 of as 8 $1,000, 5-year bonds on January 1, 2023 On that date, the market rate of interest was 12%. The bonds pay interest quarterly How much would an investor pay for this bond? Select one $150.000 b 1170,308 $150,066 O d $114129 O $107.973