Your company sells $160,000 of bonds for an issue price of $152,800. Which of the following...
Your company sells $160,000 of bonds for an issue price of $152,800. Which of the following statements is correct?
a. The bond sold at a price of 47.75, implying a premium of $14,400.
b. The bond sold at a price of 95.50, implying a discount of $14,400.
c. The bond sold at a price of 47.75, implying a premium of $7,200.
d. The bond sold at a price of 95.50, implying a discount of $7,200.
Homework Answers
| Bonds face value | 160,000 | |||||
| less: issue price | -152800 | |||||
| Discount on bonds | 7,200 | |||||
| 160,000*95.50= | 152800 | |||||
| hence option d is the correct answer | ||||||
| the bond sold at a price of 95.50 ,implying a discount of $7,200 | ||||||
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