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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 33
Pricing bonds
Bond prices depend on the market rate of interest, stated rate of interest, and time.
Requirements
1. Compute the price of the following 7% bonds of United Telecom.
a. $500,000 issued at 76.75.
b. $500,000 issued at 104.75.
c. $500,000 issued at 95.75.
d. $500,000 issued at 104.25.
2. Which bond will United Telecom have to pay the most to retire the bond at maturity Explain your answer.
Bond prices depend on the market rate of interest, stated rate of interest, and time.
Requirements
1. Compute the price of the following 7% bonds of United Telecom.
a. $500,000 issued at 76.75.
b. $500,000 issued at 104.75.
c. $500,000 issued at 95.75.
d. $500,000 issued at 104.25.
2. Which bond will United Telecom have to pay the most to retire the bond at maturity Explain your answer.
Explanation
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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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