A bond issue had the following details:• Face Value - $180,000• Term - 5 years, interest paid quarterly• Coupon Rate - 8%• Market Rate - 12%What is the price of this bond?$209,432.58$153,220.55$180,000.00$154,045.61

Bond represents the loan taken by the company on which a specific percentage of interest has to be…

Answered: A bond issue had the following details:…

Business

Accounting

A bond issue had the following details: $1.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A bond issue had the following details:
• Face Value - $180,000
• Term - 5 years, interest paid quarterly
• Coupon Rate - 8%
• Market Rate - 12%
What is the price of this bond?
$209,432.58
$153,220.55
$180,000.00
$154,045.61

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