Ocean Adventures issues bonds due in 10 years with a stated interest rate of 12% and a face value of $350,000. Interest
Posted: Sun Jul 03, 2022 1:07 pm
- Ocean Adventures Issues Bonds Due In 10 Years With A Stated Interest Rate Of 12 And A Face Value Of 350 000 Interest 1 (16.94 KiB) Viewed 10 times
- Ocean Adventures Issues Bonds Due In 10 Years With A Stated Interest Rate Of 12 And A Face Value Of 350 000 Interest 2 (19.74 KiB) Viewed 10 times
- Ocean Adventures Issues Bonds Due In 10 Years With A Stated Interest Rate Of 12 And A Face Value Of 350 000 Interest 3 (19.23 KiB) Viewed 10 times
Kelly Industries issued 10% bonds, dated January 1, with a face value of $100,000 on January 1, 2021. The bonds mature in 2031 (10 years). Interest is paid semiannually on June 30 and December 31. For bonds of similar risk and maturity the market yield is 11%. What was the issue price of the bonds? EV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $59,752 $94,025 $98.306, $69,277.
Roman Destinations issues bonds due in 12 years with a stated interest rate of 4% and a face value of $430,000. Interest payments are made semi-annually. The market rate for this type of bond is 3%. Using present value tables, calculate the issue price of the bonds. ( FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $473,064. $310.203. $391,547 $430,000.