FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On January 1, 2020, Swifty Corporation issued eight-year bonds with a face value of $5910000 and a stated interest rate of 4%, payable semiannually on June 30 and December 31. The bonds were sold to yield 6%. Table values are:
The present value of the principal is
Present value of 1 for 8 periods at 4% | 0.731 | ||
Present value of 1 for 8 periods at 6% | 0.627 | ||
Present value of 1 for 16 periods at 2% | 0.728 | ||
Present value of 1 for 16 periods at 3% | 0.623 | ||
Present value of annuity for 8 periods at 4% | 6.733 | ||
Present value of annuity for 8 periods at 6% | 6.210 | ||
Present value of annuity for 16 periods at 2% | 13.578 | ||
Present value of annuity for 16 periods at 3% | 12.561 |
The present value of the principal is
$3705570.
$3681930.
$4302480.
$4320210.
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