On August 1, 2014, Bonnie purchased $40,000 of Huber Co.s 10%, 20-year bonds at face value. Huber
Question:
On August 1, 2014, Bonnie purchased $40,000 of Huber Co.’s 10%, 20-year bonds at face value. Huber Co. has paid the semiannual interest due on the bonds regularly. On August 1, 2022, market rates of interest had fallen to 8%, and Bonnie is considering selling the bonds.
Required:
Using the present value tables in Chapter 6, calculate the market value of Bonnie’s bonds on August 1, 2022.
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The semiannual interest on the bonds 10 stated rate 40000 face amount 612 2000 The remaining ...View the full answer
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