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Brief Exercise 14-1 Pina Corporation issues $460,000 of 9% bonds, due in 11 years, with interest payable...

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Accounting

Brief Exercise 14-1

Pina Corporation issues $460,000 of 9% bonds, due in 11 years,with interest payable semiannually. At the time of issue, themarket rate for such bonds is 10%.

Compute the issue price of the bonds. (Round presentvalue factor calculations to 5 decimal places, e.g. 1.25124 and thefinal answer to 0 decimal places e.g. 58,971.)

Issue price of the bonds???

Answer & Explanation Solved by verified expert
3.6 Ratings (386 Votes)
Price of the bond could be calculated using below formula P C 2 1 1 YTM2 2n YTM2 F 1 YTM2 2n Where Face    See Answer
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