On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face...
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On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $400 million. The bonds mature on September 30, 2041 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. ((FV of $1. PV of $1. FVA of $1, PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Determine the price of the bonds on September 30, 2021. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.) Table values are based on: n= Cash Flow Present Value Interest Principal Price of bonds Amount On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $400 million. The bonds mature on September 30, 2041 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. ((FV of $1. PV of $1. FVA of $1, PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Determine the price of the bonds on September 30, 2021. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.) Table values are based on: n= Cash Flow Present Value Interest Principal Price of bonds Amount
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Solution Answer The price of bonds on September 302021 is 331... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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