Tavinona Company issued 1,000; $1,000 bonds for a bond issue of $1,000,000. The bonds were...
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Tavinona Company issued 1,000; $1,000 bonds for a bond issue of $1,000,000. The bonds were issued for a 15-year term with a coupon rate of 4.5%. a. The current market rate is 5.0%. Calculate the present (market) value of one bond, then calculate the amount of the bond discount.
a.$947.67, $52.33
b. $969.80, $30.20
c. $961.03, $38.97
d. $959.45, $40.55
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