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### Horngren'S Financial And Managerial Accounting

Book edition 6th
Author(s) Tracie L. Miller-Nobles, Brenda L. Mattison
Pages 992 pages
ISBN 9780134486833

# Bond prices depend on the market rate of interest, stated rate of interest, and time.Requirements1. Compute the price of the following 8% bonds of Country Telecom.a. $100,000 issued at 75.25b.$100,000 issued at 103.50c. $100,000 issued at 94.50d.$100,000 issued at 103.252. Which bond will Country Telecom have to pay the most to retire at maturity? Explain your answer.

(a) $75,250 (b)$103,500 (c) $94,500 (d)$103,250

See the step by step solution

## Step 1: Definition of bonds

Bonds are the loans issued by the company to the investors on which regular interest payment are made by the company.

## Step 2: Price of the bonds

a. In this case, the bonds are issued at a discount

b. In this case, the bonds are issued at a premium

c. In this case, the bonds are issued at a discount

d. In this case, the bonds are issued at a premium