Which bond will have the most interest expense


Response to the following problem:

Compute the price of the following 8% bonds:

a. $100,000 quoted at 92.6 c. $100,000 quoted at 77.75

b. $100,000 quoted at 102.5 d. $100,000 quoted at 110.375

Which bond will have the least interest expense over its life?

Which bond will have the most interest expense? Explain.

 

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Financial Accounting: Which bond will have the most interest expense
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