Help Save& ExitSubmit Cheg Marwick Corporation issues 12%, 5 year bonds with a p

Question

Help Save& ExitSubmit Cheg Marwick Corporation issues 12%, 5 year bonds with a par value of $130,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, what is the bond's issue (selling) price, assuming the following Present Value factors: and 5 Harvey and Present value Annuity va 3.6048 7.3601 3.7908 7-7217 ollowing ino 5 12% 10 6 5 101 10 5 0.5674 0.5584 0.6209 0.6139 Multiple Choice cn C. S18.000 $1130.000 depreciableasse $1,653,531 $919 244

Explanation / Answer

1 Amount PV factor Present value Semi-annual interest 67800 7.7217 523531 Par value 1130000 0.6139 693707 Bond issue price 1217238 Option 4 is correct 2 Beginning Equity balance = 50500-30000 = $20500 Option 3 is correct

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.