A company issued 7%, 20-year bonds with a face amount of $82 million. The market yield for bonds of similar risk and maturity is 8%. Interest is paid semiannually. At what price did the bonds sell? Note: Do not round intermediate calculations and round you final answer to nearest whole dollar. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Price of bonds

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A company issued 7%, 20-year bonds with a face amount of $82 million. The market yield for bonds of similar risk and maturity is 8%.
Interest is paid semiannually. At what price did the bonds sell?
Note: Do not round intermediate calculations and round you final answer to nearest whole dollar. Use tables, Excel, or a financial
calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Price of bonds
........
Transcribed Image Text:A company issued 7%, 20-year bonds with a face amount of $82 million. The market yield for bonds of similar risk and maturity is 8%. Interest is paid semiannually. At what price did the bonds sell? Note: Do not round intermediate calculations and round you final answer to nearest whole dollar. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Price of bonds ........
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