On January 1, 2007, Alberta Corp. issued $700, 000, 9%, 10 year bonds. Interest is paid...

  

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On January 1, 2007, Alberta Corp. issued $700, 000, 9%, 10 year bonds. Interest is paid semi-annually on June 30 and December 31.The effective rate is 8%. What is the price of the bond? Multiple Choice $700, 000 $630, 000 $560, 000 What account is credited for accrued interest when bonds are sold by an issuer between interest payment dates?(CGA FA3-Dec 99) Multiple Choice Bonds payable Interest payable Interest revenue On January 1, 2007, Alberta Corp. issued $700, 000, 9%, 10 year bonds. Interest is paid semi-annually on June 30 and December 31.The effective rate is 8%. What is the price of the bond? Multiple Choice $700, 000 $630, 000 $560, 000 What account is credited for accrued interest when bonds are sold by an issuer between interest payment dates?(CGA FA3-Dec 99) Multiple Choice Bonds payable Interest payable Interest revenue

Answer rating: 100% (QA)

Solution 1 Answer Bond price 755263 Explanation Bond price coupon 1 1rnr FV 1rn Where coupo... View the full answer