A $100,000 5-year 5% bond is issued on January 1,2017.The bond pays interest annually.The market rate is 7%.What is the selling premium or discount on the bonds,rounded to nearest dollar?
A) $8,659 premium
B) $8,200 premium
C) $8,659 discount
D) $8,200 discount
Correct Answer:
Verified
Q21: What are positive and negative covenants? Give
Q29: How should non-current financial liabilities be recorded
Q32: When will bonds sell at a premium?
A)When
Q33: When will bonds sell at a discount?
A)When
Q35: What is the coupon rate?
A)Yield on the
Q38: Based on the characteristics provided below, what
Q47: A $100,000 5-year 6% bond is issued
Q52: A $100,000 5-year 7% bond is issued
Q53: A $100,000 5-year 7% bond is issued
Q55: A $100,000 5-year 6% bond is issued
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents