What is the market value of each of the following bond issues? (Round to the nearest dollar.)

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(a) 10% bonds of $1,000,000 sold on bond issue date; 10-year life; interest payable semiannually; effective rate, 12%.

(b) 9% bonds of $200,000 sold on bond issue date; 5-year life; interest payable semiannually; effective rate, 8%.

(c) 8% bonds of $150,000 sold 30 months after bond issue date; 15-year life; interest payable semiannually; effective rate, 10%.

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Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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Question Posted: Jan 28, 2012 05:35 AM

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What is the market value of each of the following bond issues? (Round to the nearest dollar.)

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a Present value of maturity value Maturity value of bonds after 10 years or 20 semiannual periods 1000000 Effective interest rate x 12 per year or 6 p...View the full answer

Intermediate Accounting

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