January 1, 2008, Bleeker Co. issued eight-year bonds with a face value of $1,000,000 - 88051

Solution Posted by
Mastertutor

Mastertutor

Rating : No Rating
Solution Detail
Price: $0.99
  • From: Business, Accounting
  • Posted on: Sun 08 Feb, 2015
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description
January 1, 2008, Bleeker Co. issued eight-year bonds with a face value of $1,000,000 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 6% .627 Present value of 1 for 8 periods at 8% .540 Present value of 1 for 16 periods at 3% .623 Present value of 1 for 16 periods at 4% .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 The issue price of the bonds is $999,600. $883,560. $884,820. $889,560.
Solution Description
Attachments
Bleeker_Co._Answer.doc
Bleeker_Co._Ans...