Answered: A 700 par value five-year 10% bond with…

A 700 par value five-year 10% bond with semiannual coupons is purchased for 670.60. The present value of the redemption value is 372.05. Calculate the redemption value.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter22: Corporations: Bonds

Section: Chapter Questions

Problem 3MC

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Question

A 700 par value five-year 10% bond with semiannual
coupons is purchased for 670.60. The present value of
the redemption value is 372.05. Calculate the redemption
value.

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