On January 1, Year 1, Boston Group issued $100,000 par value, 5% 5-year bonds when the market rate of interest was 8%. Interest is payable annually on December 31. The following present value information is available:
5%, 8%
Present value of $1 (n = 5) 0.78353, 0.68058
Present value of an ordinary annuity (n = 5) 4.32948, 3.99271
What amount is the value of net bonds payable at the end of Year 1?
A. $110,638
B. $100,000
C. $88,022
D. $90,064
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On January 1, Year 1, Boston Group issued $100,000 par value, 5% 5-year bonds when the market rate of interest was 8%. Interest is payable ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
According to studies on the balance of power in relationships, in which of the following instances is a heterosexual marriage most likely to be satisfying?
Answers (1)
Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $58,000 and $46,000 to each member, respectively.
Answers (1)
Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, where Sandy can make 6 tables or 18 chairs.
Answers (1)
Why would you write an inquiry to a company?
Answers (2)
Total variable costs A. always increase with output. B. initially decrease and then increase with output. C. initially increase as output increases and then decrease. D. always decrease with output.
Answers (1)
New Questions in Business
What would the production components be for the input, conversion and output for opening a summer band camp?
Answers (1)
When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. The price-elasticity of demand coefficient for this product is
Answers (1)
Which of the following would be a closed question? What interests you about this job? Why did you decide to change career fields? Where do you see yourself in five years? When did you move here?
Answers (1)
Hutchinson Corporation has zero debt - it is financed only with common equity. Its total assets are $330,000.
Answers (1)
A customer owns 210 shares of ABC common stock. ABC declares a rights offering, with the terms being that for every 20 rights tendered, a shareholder may purchase one additional share at $20 per share.
Answers (1)