Scottie Adams Bird Supplies issued 9% bonds, dated January 1, with a face amount of $260,000...
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Scottie Adams Bird Supplies issued 9% bonds, dated January 1, with a face amount of $260,000 on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 8%. Interest is paid semiannually on June 30 and December 31. What is the price of the bonds at January 1, 2021? Some relevant and irrelevant present value factors: * PV of annuity due of $1: n= 20; i = 4% is 14.13394 * PV of ordinary annuity of $1: n = 20; i = 4% is 13.59033 **PV of $1: n= 20; i= 4% is 0.45639 Multiple Choice $184,498. $277,668. $436,675. $292,804. Scottie Adams Bird Supplies issued 9% bonds, dated January 1, with a face amount of $260,000 on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 8%. Interest is paid semiannually on June 30 and December 31. What is the price of the bonds at January 1, 2021? Some relevant and irrelevant present value factors: * PV of annuity due of $1: n= 20; i = 4% is 14.13394 * PV of ordinary annuity of $1: n = 20; i = 4% is 13.59033 **PV of $1: n= 20; i= 4% is 0.45639 Multiple Choice $184,498. $277,668. $436,675. $292,804.
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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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