When the market rate of interest was 10%, Gloria Corporation issued $2,400,000, 12%, 8-year bonds that pay interest semiannually.
The selling price of this bond issue was: (If PV tables are used, select the closest answer from the options provided.)

Question

Quizplus · Accepted Answer

11ee7640_e1c4_0b6d_90da_c17bf2edba3d_TBCB1007_00 N = (8 x 2) = 16 I = (10% / 2) = 5
Semi-annual interest payments: $2,400,000 x (0.12 x 1/2) = $144,000

When the Market Rate of Interest Was 10%, Gloria Corporation