question archive Sunshine Company issues $1,000,000 of 8% bonds that pay interest semiannually and mature in 10 years
Sunshine Company issues $1,000,000 of 8% bonds that pay interest semiannually and mature in 10 years
Subject:FinancePrice: Bought3
Sunshine Company issues $1,000,000 of 8% bonds that pay interest
semiannually and mature in 10 years. Compute the bonds' issue price assuming that the bonds' market interest rate is:A. 6% per year compounded semiannually
B. 10% per year compounded semiannually
C. 8% per year compounded semiannually
2.On June 30, one year before maturity, Gym Shoes, Inc. retired $360,000 of its 10% bonds payable at 96. The bond's book value on June 30 is $330,000. Bond interest is presently paid up to the date of retirement. How much is the gain or loss on the retirement of these bonds?
