ABC Corporation plans to issue an 8%, 15-year, P5,000,000 face value bonds. It will incur P300,000...
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ABC Corporation plans to issue an 8%, 15-year, P5,000,000 face value bonds. It will incur P300,000 as underwriting fee. What is the cost of the bond based on the following methods? 2. Interpolation method using the range 5% to 10% 3. Interpolation method using the range 8% to 10% 4. Interpolation method using the range 8% to 9% 5. Yield-to-maturity formula 6. Trial and error method (closest percent, 5 decimal places) ABC Corporation plans to issue an 8%, 15-year, P5,000,000 face value bonds. It will incur P300,000 as underwriting fee. What is the cost of the bond based on the following methods? 2. Interpolation method using the range 5% to 10% 3. Interpolation method using the range 8% to 10% 4. Interpolation method using the range 8% to 9% 5. Yield-to-maturity formula 6. Trial and error method (closest percent, 5 decimal places)
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Answer rating: 100% (QA)
Lets calculate the cost of the bond using various methods step by step 1Cost of the Bond without Underwriting Fee The cost of the bond without the und... View the full answer
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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