(Answered) Problemon january 1 2001 sandstone corporation purchased

Accounting

Problem

On January 1, 2001, Sandstone Corporation purchased $200,000 face value, 9%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2011, and pay interest annually beginning January 1, 2002. The market rate of interest is 11%. How much did Sandstone pay for the bonds?
11% Interest Table Factors

Period	Present Value of $1 (Table 6-2)	Present Value of an Ordinary Annuity of $1 (Table 6-4)
6	.53464	4.23054
7	.48166	4.71220
8	.43393	5.14612
9	.39092	5.53705
10	.35218	5.88923

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