On January 1, 2017, Oriole Company issued eight-year bonds with a face value of $ 6100000 and
Question:
On January 1, 2017, Oriole Company issued eight-year bonds with a face value of $ 6100000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 6% 0.627 Present value of 1 for 8 periods at 8% 0.540 Present value of 1 for 16 periods at 3% 0.623 Present value of 1 for 16 periods at 4% 0.534 Present value of annuity for 8 periods at 6% 6.210 Present value of annuity for 8 periods at 8% 5.747 Present value of annuity for 16 periods at 3% 12.561 Present value of annuity for 16 periods at 4% 11.652.
The present value of the interest is:
a. $ 2272860.
b. $ 2103402.
c. $ 2298663.
d. $ 2132316.
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer