A 15-year bond issue of 4 comma 900 comma000 and bearing interest at 3.5% payable annuallyis sold to yield 3.1% compounded semi dashannually. What is the issue price of the bonds?

Given that, Nominal interest rate (i) = 3.1% Compounding frequency = 2 Effective rate of return (r)…

Answered: A 15-year bond issue of 4 comma 900…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000
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On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000 are to be made annually. If the company received proceeds of $112,300, how would the bonds issuance be quoted? A. 1.123 B. 112.30 C. 0.890 D. 89.05
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A 15-year bond issue of 4 comma 900 comma 000 and bearing interest at 3.5% payable annually is sold to yield 3.1% compounded semi dash annually. What is the issue price of the bonds?