The face value of a bond is $71,000,its stated rate is 7%,and the term of the bond is five years.The bond pays interest semiannually.At the time of issue,the market rate is 8%.Determine the present value of the bonds at issuance. Present value of $1:
Present value of ordinary annuity of $1:
A) $50,844
B) $20,156
C) $68,152
D) $71,000
Correct Answer:
Verified
Q182: When using the effective-interest amortization method,the amount
Q183: Generally accepted accounting principles require that interest
Q185: When using the effective-interest amortization method,the amount
Q186: Generally accepted accounting principles require that interest
Q189: On January 1,2019,Agree Company issued $85,000 of
Q190: The face value is $82,000,the stated rate
Q190: The process for calculating present values is
Q191: When using the effective-interest amortization method,the amount
Q191: Compute the present value of an ordinary
Q197: On January 1,2019,French Company issued $74,000 of
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