Exodus Limousine Company has $1,000 par value bonds outstanding at 12 percent interest. The bonds will mature in 30 years with annual payments. Use Appendix B and Appendix D. Compute the current price of the bonds if the current yield to maturity is:(Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to 2 decimal places.) Price of the bond a. 7 percent $ b. 17 percent $

Exodus Limousine Company has $1,000 par value bonds outstanding at 12 percent interest. The bonds will mature in 30 years with annual payments. Use Appendix B and Appendix D. Compute the current price of the bonds if the current yield to maturity is:(Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to 2 decimal places.) Price of the bond a. 7 percent $ b. 17 percent $

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual...

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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, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of the bonds? Explain why the cash received from selling this bond is different from the $200,000 face value of the bond.
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