On January 1, 2019, bonds with a face value of $109,000 were sold. The bonds...
70.2K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2019, bonds with a face value of $109,000 were sold. The bonds mature on January 1, 2029. The face interest rate is 10 % annually. The bonds pay interest semiannually on July 1 and January 1. The market rate of interest is 10 % annually. What is the market price of the bonds on January 1, 2019? The present value of $1 for 20 periods at 5 % is 0.377. The present value of an ordinary annuity of $1 for 20 periods at 5 % is 12.462. The present value of $1 for 10 periods at 10 % is 0.508. The present value of an ordinary annuity of $1 for 10 periods at 10% is 6.71. (Round your final answer to the nearest dollar.) OA. $113,360 O B. $95,427 OC. $84,628 OD. $109,000 see see
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
