Slapshot company issued $200,000, 10-year mortgage bonds to X Company at Par value. The bonds bear...

 

Transcribed Image Text:

Slapshot company issued $200,000, 10-year mortgage bonds to X Company at Par value. The bonds bear a contract rate of 12% and interest is paid semi-annually on January 1 and July 1. The market rate of interest is 11%. Calculate the original issue price of bonds for X Company. (Use present value factors to 6 decimal places, round your intermediate calculations to 2 decimal places and round your final answer to the nearest dollar.) a. $211,950 b. $200,000 c. $143,404 d. $200,545 с. Slapshot company issued $200,000, 10-year mortgage bonds to X Company at Par value. The bonds bear a contract rate of 12% and interest is paid semi-annually on January 1 and July 1. The market rate of interest is 11%. Calculate the original issue price of bonds for X Company. (Use present value factors to 6 decimal places, round your intermediate calculations to 2 decimal places and round your final answer to the nearest dollar.) a. $211,950 b. $200,000 c. $143,404 d. $200,545 с.

Answer rating: 100% (QA)

Correct option is a 211950 Cortect option is 211950 ... View the full answer