Question: On July 1 , 2 0 2 0 , Davis Corp. issued $ 8 0 0 , 0 0 0 par value, 1 0 %

On July 1,2020, Davis Corp. issued $ 800,000 par value, 10%,10-year bonds, with

interest payable semi-annually on January 1 and July 1. The bonds were issued for $

908,722. On January 2,2022, Davis offered to buy back the bonds at 103. Forty percent

of the bondholders accepted the offer. Davis uses the effective-interest method of

amortizing premium or discount. 


How to find I/Y in a financial calculator.  


 
 

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