On January 1 2018 Shirley Corporation purchased 8 bonds date

On January 1, 2018, Shirley Corporation purchased 8% bonds dated January 1, 2018, with a face amount of $15 million. The bonds mature in 2027 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31.
Required:
Determine the price of the bonds at January 1, 2018. (Enter your answer in whole dollars.)

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

= (15000000*4%*12.46221)+(15000000*0.37689)

Issue price of bonds = $13130676

On January 1, 2018, Shirley Corporation purchased 8% bonds dated January 1, 2018, with a face amount of $15 million. The bonds mature in 2027 (10 years). For bo

On January 1 2018 Shirley Corporation purchased 8 bonds date

Solution

Get Help Now

Submit a Take Down Notice