Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Slapshot company issued $200,000, 10-year mortgage bonds to X Company at Par value. The
bonds bear a contract rate of 12% and interest is paid semi-annually on January 1 and July 1.
The market rate of interest is 11%. Calculate the original issue price of bonds for X Company.
(Use present value factors to 6 decimal places, round your intermediate calculations to 2
decimal places and round your final answer to the nearest dollar.)
a. $211,950
b. $200,000
c. $143,404
с.
d. $200,545
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Transcribed Image Text:Slapshot company issued $200,000, 10-year mortgage bonds to X Company at Par value. The bonds bear a contract rate of 12% and interest is paid semi-annually on January 1 and July 1. The market rate of interest is 11%. Calculate the original issue price of bonds for X Company. (Use present value factors to 6 decimal places, round your intermediate calculations to 2 decimal places and round your final answer to the nearest dollar.) a. $211,950 b. $200,000 c. $143,404 с. d. $200,545
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