Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, a company issues bonds dated january

On January 1, a company issues bonds dated January 1 with a par value of...

50.1K

Verified Solution

Question

Accounting

On January 1, a company issues bonds dated January 1 with a par value of $280,000. The bonds mature in 3 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8%. Using the present value factors below, the issue (selling) price of the bonds is:

n= i= Present Value of an Annuity Present value of $1
3 7.0 % 2.6243 0.8163
6 3.5 % 5.3286 0.8135
3 8.0 % 2.5771 0.7938
6 4.0 % 5.2421 0.7903

Answer & Explanation Solved by verified expert
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

Basic Math
1.2K views

Suppose that the batting averages in baseball are normally distributed so that the mean is .258...

Physics
1.2K views

An isoceles glass prism stands with its horizontal base in water as shown in the...

Physics
1.2K views

The prism in the figure is in a non uniform electric field E 2x 3y...

Physics
1.2K views

The figure below shows n 4 moles of an ideal gas taken through a complete...

Geometry
1.2K views

Triangle ABC and Triangle ADE are graphed on the set of axes B A D...

Algebra
1.2K views

2 r 7r 8

Algebra
1.2K views

Which of the following is the factored form of the simplest function with real and...

Accounting
1.2K views

Bramble inc, has two divisions. Division A makes and sells student desks. Division B manufactures...

Accounting
1.2K views

4. BCS Corporation is a calendar-year, accrual-method taxpayer. BCS was formed and started its business...

Accounting
1.2K views

The following transactions were completed by the company. The owner invested $15,600 cash...

Accounting
1.2K views

Eue bond: What is the interest troente on the bonds in 202?? sicoran. 1920000 1....

Finance
1.2K views

You are choosing between two projects. The cash flows for the projects are given in...