West Fork Corporation issued $ 100,000 par value, 6%, four- year bonds ( i. e., there were

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West Fork Corporation issued $ 100,000 par value, 6%, four- year bonds ( i. e., there were 100 $ 1,000 par value bonds in the issue). Interest is payable annually, with the first inter-est payment made at the end of the period. West Fork paid $ 1,800 in underwriting fees. Determine the issue price of the bonds, assuming that the market rate of interest is 8%. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Intermediate Accounting

ISBN: 978-0132162302

1st edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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