Determine the price of the bonds on


On September 30, 2016, the Maple Credit issued 8% stated rate bonds with a face amount of $420 million. The bonds mature on September 30, 2036 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30.

Required:

Determine the price of the bonds on September 30, 2016.

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Accounting Basics: Determine the price of the bonds on
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