A company issued $300,000, 6%, nine year bonds on January 1. The market rate of interest was 5%. Interest on these bonds is payable annually on December 31.
Note: I used four decimals for my PV factors. If you used three, you'll get a slightly different answer (something like 321,444).
Ask what your professor expects you to use, before the test.
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|1||Bond Theory Multiple Choice||Easy|
Bond Issue Prices
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|3||Coupon and Market Rates Multiple Choice||Moderate|
|1||Intro to Bonds||10:04|
|2||Discounts and Premiums||7:34|
|3||Selling at a Discount||7:15|
|4||Selling for a Premium||8:11|
|7||Interacting with Market Rates||5:30|