For the next 3 Questions: Round your answer to the nearest dollar, such as 12345. (No need to write $ as $ is already in
Posted: Thu May 19, 2022 12:32 am
For the next 3 Questions:
Round your answer to the nearest
dollar, such as 12345. (No need to write $ as $ is
already in front of the box.) (Allowance is set + or -
$1.)
Use the effective interest rate method.
The following information pertains to a bond issue of the
VWX Corporation:
Maturity value: $1,000,000
Maturity date: December 31, 2023
Stated interest rate (Coupon rate): 5.25%
Interest payments are made annually on December
31st
Date of issue: January 1, 2016
Effective (market) interest rate (Yield to maturity) at
issue: 4.75%
VWX financed $Answer by this bond issue on January 1, 2016.
(Assume there was no expenses on issuing the bond.)
Round your answer to the nearest
dollar, such as 12345. (No need to write $ as $ is
already in front of the box.) (Allowance is set + or -
$1.)
Use the effective interest rate method.
The following information pertains to a bond issue of the
VWX Corporation:
Maturity value: $1,000,000
Maturity date: December 31, 2023
Stated interest rate (Coupon rate): 5.25%
Interest payments are made annually on December
31st
Date of issue: January 1, 2016
Effective (market) interest rate (Yield to maturity) at
issue: 4.75%
VWX financed $Answer by this bond issue on January 1, 2016.
(Assume there was no expenses on issuing the bond.)