Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. brief exercise 14-1 pina corporation issues $460,0

Brief Exercise 14-1 Pina Corporation issues $460,000 of 9% bonds, due in 11 years, with interest payable...

80.2K

Verified Solution

Question

Accounting

Brief Exercise 14-1

Pina Corporation issues $460,000 of 9% bonds, due in 11 years,with interest payable semiannually. At the time of issue, themarket rate for such bonds is 10%.

Compute the issue price of the bonds. (Round presentvalue factor calculations to 5 decimal places, e.g. 1.25124 and thefinal answer to 0 decimal places e.g. 58,971.)

Issue price of the bonds???

Answer & Explanation Solved by verified expert
3.6 Ratings (386 Votes)
Price of the bond could be calculated using below formula P C 2 1 1 YTM2 2n YTM2 F 1 YTM2 2n Where Face    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

RESPIRATORY SYSTEM 1.Name each organ of the mammalian respiratory system and provide its function. 2.Use Boyle’s law and...

Mechanical Engineering
1.2K views

A vapor-compression heat pump with a heating capacity of 500 kJ/min is driven by a power...

Physics
1.2K views

12 A glass full of hot milk is poured on the table It begins to...

Basic Math
1.2K views

11 1 point Simplify 32 2 5 a 81820 b 820 81 81810 d 81...

Basic Math
1.2K views

Average sales for an online textbook distributor were $71.75 per customer per purchase. Assume the...

Calculus
1.2K views

Solve the differential equation dy 8x 4 y 2 y 2 dx The solution is

Calculus
1.2K views

Find the volume of the solid generated when the region bounded by y x and...

Accounting
1.2K views

Final Assessment Questions (17 of 45) SUBMIT A data-driven culture with effective and efficient data...

Accounting
1.2K views

What valuable lessons can the accounting community (incl. reporting entities and regulators), learn from the...

Accounting
1.2K views

transfers to -.when put into production, and then is transferred to --when production is completed....

Accounting
1.2K views

The Superior Company has provided the following account balances: Cash $152,600; ...

Accounting
1.2K views

The Distance Plus partnership has the following capital balances at the beginning of the current...