Compute the selling price of 12.00%, 15-year bonds with a par value of $420,000 and semiannual interest payments. The annual market rate for these bonds is 10.00%. Use present value Table B.1 and Table B.3 in Appendix B. Note: Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your other final answers to nearest whole dollar amount. Cash Flow $420,000 par (maturity) value $25,200 interest payment Price of Bond Table Value Present Value

Compute the selling price of 12.00%, 15-year bonds with a par value of $420,000 and semiannual interest payments. The annual market rate for these bonds is 10.00%. Use present value Table B.1 and Table B.3 in Appendix B. Note: Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your other final answers to nearest whole dollar amount. Cash Flow $420,000 par (maturity) value $25,200 interest payment Price of Bond Table Value Present Value

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter11: Bond Pricing And Amortization (bonds)

Section: Chapter Questions

Problem 7R

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