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On January 1,2024, Rare Bird Limited purchased 15% bonds dated January 1,2024, with a face...

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Accounting

On January 1,2024, Rare Bird Limited purchased 15% bonds dated January 1,2024, with a face amount of $24 million. The bonds
mature in 2034(10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and
December 31.
Required:
Determine the price of the bonds on January 1,2024.
Note: Use tables, Excel, or a financial calculator. Enter your answer in whole dollars. (FV of $1, PV of $1, FVA of $1, PVA of $1,FVAD
of $1 and PVAD of $1)
Price of the bonds
image

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