QS 10-3A Computing bond price C2.

enviro company issues 8%, 10-year bonds with a par value of 320,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 1/2. Confirm that the bonds selling price is approximately correct.

Required information Use the following information for the Quick Study below. The following information applies to the questions displayed below] Enviro Company issues 8%, 10-year bonds with a par value of $320,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87112. Qs 10-3A Computing bond price C2 Confirm that the bonds' selling price is approximately correct. Use present value Table B1 and Table B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations 320,000 Price of Bond 280,000 of 1411| Next > 5