Bond price Procter and Gamble’s 4.7% bonds due in 2019 were reported as selling for 104,797. Were the bonds selling at a premium or at a discount? Why is Proctor & Gamble able to sell its bonds at this price?

Bond price Procter and Gamble’s 4.7% bonds due in 2019 were reported as selling for 104,797. Were the bonds selling at a premium or at a discount? Why is Proctor & Gamble able to sell its bonds at this price?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Bond price

Procter and Gamble’s 4.7% bonds due in 2019 were reported as selling for 104,797.

Were the bonds selling at a premium or at a discount? Why is Proctor & Gamble able to sell its bonds at this price?

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