The following terms relate to independent bond issues: 460 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 460 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 830 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments 1,890 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar.
The following terms relate to independent bond issues: 460 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 460 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 830 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments 1,890 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following terms relate to independent bond issues:
- 460 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
- 460 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
- 830 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
- 1,890 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments
Use the appropriate present value table:
PV of $1 and PV of Annuity of $1
Required:
Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar.
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