Question

On January 1, 2017, Concord Corporation issued eight-year bonds with a face value of $6,300,000 and...

On January 1, 2017, Concord Corporation issued eight-year bonds with a face value of $6,300,000 and a stated interest rate of 6%, payable semiannually on starting in July on July 1 and January 1. The bonds were sold to yield 8%.

Table values are:

Present value of 1 for 8 periods at 6% 0.627

Present value of 1 for 8 periods at 8% 0.540

Present value of 1 for 16 periods at 3% 0.623

Present value of 1 for 16 periods at 4% 0.534

Present value of annuity for 8 periods at 6% 6.210

Present value of annuity for 8 periods at 8% 5.747

Present value of annuity for 16 periods at 3% 12.561

Present value of annuity for 16 periods at 4% 11.652

What is the issue price of the bonds? (Round two decimal places, i.e., $10.89)

0 0
Add a comment Improve this question Transcribed image text
Answer #1

$ 63,00,000 3% Face Value of Bond Interest rate @6% / 2 Market rate of Return 8%/2 Coupon @ AX 3% (B) 4% 1,89,000 $ PV Annuit

In case of any Issue or doubts, please comment below

Add a comment
Know the answer?
Add Answer to:
On January 1, 2017, Concord Corporation issued eight-year bonds with a face value of $6,300,000 and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • On January 1, 2017, Concord Corporation issued eight year bonds with a face value of $6070000...

    On January 1, 2017, Concord Corporation issued eight year bonds with a face value of $6070000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: 0.627 0.540 0.623 0.534 6.210 Present value of 1 for 8 periods at 6% Present value of 1 for 8 periods at 8% Present value of 1 for 16 periods at 3% Present value of 1 for 16 periods...

  • On January 1, 2017, Waterway Industries issued eight-year bonds with a face value of $6700000 and...

    On January 1, 2017, Waterway Industries issued eight-year bonds with a face value of $6700000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: On January 1, 2017, Waterway Industries issued eight-year bonds with a face value of $6700000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are:...

  • CUEIL ALLEMPLIFIURIES On January 1, 2017. Crane Company issued eight year bonds with a face value...

    CUEIL ALLEMPLIFIURIES On January 1, 2017. Crane Company issued eight year bonds with a face value of $6150000 and a stated interest rate of 8% payable semiannually on June 30 and December 31. The bonds were sold to yield 10%. Table values are: Present value of 1 for 8 periods at 8% Present value of 1 for 8 periods at 10% Present value of 1 for 16 periods at 4% Present value of 1 for 16 periods at 5% Present...

  • Use the following to answer questions 19-20: On January 1, 2017, Ellison Co. issued eight-year bonds...

    Use the following to answer questions 19-20: On January 1, 2017, Ellison Co. issued eight-year bonds with a face value of $6,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 627 6% Present value of 1 for 8 periods at 8% .540 Present value of 1 for 16 periods at 623 3% Present value of...

  • On January 1, 2020, Swifty Corporation issued eight-year bonds with a face value of $5910000 and...

    On January 1, 2020, Swifty Corporation issued eight-year bonds with a face value of $5910000 and a stated interest rate of 4%, payable semiannually on June 30 and December 31. The bonds were sold to yield 6%. Table values are: Present value of 1 for 8 periods at 4%         0.731Present value of 1 for 8 periods at 6%         0.627Present value of 1 for 16 periods at 2%       0.728Present value of 1 for 16 periods at 3%       0.623Present value of annuity for 8 periods at...

  • On January 1, 2017, Bramble Corp. issued eight-year bonds with a face value of $6120000 and...

    On January 1, 2017, Bramble Corp. issued eight-year bonds with a face value of $6120000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 8 periods at 10% 0.467 Present value of 1 for 8 periods at 12% 0.404 Present value of 1 for 16 periods at 5% 0.458 Present value of 1 for 16 periods at 6% 0.394...

  • Multiple Choice Question 62 On January 1, 2017, Sheffield Corp. issued eight-year bonds with a face...

    Multiple Choice Question 62 On January 1, 2017, Sheffield Corp. issued eight-year bonds with a face value of $6140000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: 0.467 Present value of 1 for 8 periods at 10% Present value of 1 for 8 periods at 12% Present value of 1 for 16 periods at 5% Present value of 1 for 16 periods at...

  • A PROBLEM D: On January 1, 2020 Lance Co. issued five-year bonds with a face value...

    A PROBLEM D: On January 1, 2020 Lance Co. issued five-year bonds with a face value of $1,000,000 and a stated interest rate of 12% payable semiannually on July 1 and January 1. The bonds were sold to yield 10%. Present value table factors are: Present value of 1 for 5 periods at 10% 62092 Present value of 1 for 5 periods at 12% 56743 Present value of 1 for 10 periods at 5% . 61391 Present value of 1...

  • On January 1, 2020 Wildhorse Co. issued five-year bonds with a face value of $760,000 and...

    On January 1, 2020 Wildhorse Co. issued five-year bonds with a face value of $760,000 and a stated interest rate of 12% payable semiannually on July 1 and January 1. The bonds were sold to yield 10%. Present value table factors are: Present value of 1 for 5 periods at 10% 0.62092 Present value of 1 for 5 periods at 12% 0.56743 Present value of 1 for 10 periods at 5% 0.61391 Present value of 1 for 10 periods at...

  • On January 1, 2013, Marina Corp. issued 10-year bonds with a face value of $4,000,000 and...

    On January 1, 2013, Marina Corp. issued 10-year bonds with a face value of $4,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are:             Present value of 1 for 10 periods at 10% ........................................             .386             Present value of 1 for 10 periods at 12% ........................................             .322             Present value of 1 for 20 periods at 5% ..........................................             .377            ...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT