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Brief Exercise 5-20(Algo) Price of a bond [L05-10] On December 31,2024, a company...

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Accounting

Brief Exercise 5-20(Algo) Price of a bond [L05-10]
On December 31,2024, a company issued 6% stated rate bonds with a face amount of $104
million. The bonds mature on December 31,2054. Interest is payable annually on each December
31, beginning in 2025.
Determine the price of the bonds on December 31,2024, assuming that the market rate of
interest for similar bonds was 7%.
Note: Use tables, Excel, or a financial calculator. Enter your answers in whole dollars and not in
millions. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
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