Bond issue pricea bond payable is dated january 1 2014 and, Ask an Expert

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Bond Issue Price

A bond payable is dated January 1, 2014, and is issued on that date. The face value of the bond is $100,000, and the face rate of interest is 8%. The bond pays interest semiannually. The bond will mature in five years.

Required

1. What will be the issue price of the bond if the market rate of interest is 6% at the time of issuance?

2. What will be the issue price of the bond if the market rate of interest is 8% at the time of issuance?

3. What will be the issue price of the bond if the market rate of interest is 10% at the time of issuance?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91624299

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