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20 August, 13:51

On january 1, applied technologies corporation (atc) issued $510,000 in bonds that mature in 10 years. the bonds have a stated interest rate of 8 percent. when the bonds were issued, the market interest rate was 8 percent. the bonds pay interest once per year on december 31. required: 1. determine the price at which the bonds were issued and the amount that atc received at issuance

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  1. 20 August, 14:10
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    The correct answer for both is $510,000.

    Explanation:

    According to the scenario, the computation of the given data are as follows:

    Issued in Bonds = $510,000

    Interest rate = 10%

    Market rate = 10%

    As, interest rate is equal to market rate of the the bond, So it can be considered as bonds are issued at the face value.

    So, the issued price = $510,000

    The issuance amount = $510,000
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