On January 1, a company issues bonds dated January 1 with a par value of $360,000....

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On January 1, a company issues bonds dated January 1 with a par value of $360,000. The bonds mature in 3 years. The contract

business accounting

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Answer 1

Answer #1

Issue price of bonds = Present value of interest+Present value of maturity

= (360000*3.5%*5.2421)+(360000*0.7903)

Issue price of bonds = 350558

So answer is b) $350558

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Answer 2

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