a. Safron Corporation issued bonds in the amount of $70,000 that will be paid in four years.
Question:
a. Safron Corporation issued bonds in the amount of $70,000 that will be paid in four years. Interest of $7,000 is payable annually each December 31 with the first interest payment at the end of the year on December 31, 2019. If the market rate of interest is 8%, what is the amount of the bond issue proceeds? Round intermediary currency computations and your final answer to the nearest cent, $X.XX.)
The bond issue proceeds are $ | ? | . |
b. Maki Corporation issued bonds in the amount of $600,000 that will be paid in 10 years. Interest of $12,000 is payable semiannually each June 30 and December 31 with the first interest payment at the end of the period on June 30, 2019. If the market rate of interest is 6%, what is the amount of the bond issue proceeds?
Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-0071317658
15th edition
Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt