On January 1, 2016, the Platnum Corporation purchased $ 420,000 par value 6 % bonds...
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Accounting
On January 1, 2016, the Platnum Corporation purchased $ 420,000 par value 6 % bonds that mature on December 31, 2019. The market rate of interest was 4 % when Platnum purchased the bonds. Coley receives interest on the bonds semiannually each June 30 and December 31.
Requirements
What future cash inflows will Platnum receive on this investment? What is the purchase price of the bonds? Did Platnum purchase the bonds at a discount or premium?
What future cash inflows will Platnum receive on this investment?
The future cash inflows that Platnum will receive on investment is $
.
What is the purchase price of the bonds? (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round intermediary currency computations and your final answers to the nearest whole dollar.)
The purchase price of the bonds is $
.
Did Platnum purchase the bonds at a discount or premium?
Platnum purchased the bonds at a
of $
.
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