On January 1, 2020, Asher Inc. issued 90 bonds each with a $1,000 face value....
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Accounting
On January 1, 2020, Asher Inc. issued 90 bonds each with a $1,000 face value. The bonds pay interest annually, mature in four years, and have an annual stated rate of 2%. The effective interest rate at the date of issuance was 3%. What is the net book value of the bonds on 12/31/2020? (round answer to the nearest dollar)
PV of $1 when N=4, I=2%: 0.92385
PV of $1 when N=4, I=3%: 0.88849
PV of annuity when N=4, I=2%: 3.80773
PV of annuity when N=4, I=3%: 3.71710
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