Applicable interest rate for bonds


On January 1, 2003 Beta Gamma Sigma sells bonds with a face value of $10,000, and a stated interest rate of 10%. The bonds pay interest annually on December 31st and mature in 2 years. The applicable interest rate for bonds of this length and risk, is 8%. A. How much do the bonds sell for?

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Accounting Basics: Applicable interest rate for bonds
Reference No:- TGS092239

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