What is the carrying amount of the bonds


Problem: A company issues $100,000 of semiannual 10-year, 8% bonds sold to yield 10%

Present value of $1.00 at 5% for 20 periods 0.3769
Present value of $1.00 at 8% for 10 periods 0.4632
Present value of ordinary annuity of $1.00 @ 5% for 20 periods 12.462
Present value of ordinary annuity of $1.00 @ 8% for 10 periods 6.710

What is the carrying amount of the bonds?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the carrying amount of the bonds
Reference No:- TGS02035573

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)