A $85,000, 8.50% bond redeemable at par, with annual coupon payments, is purchased 8 years before maturity to yield 4.50% compounded annually. a. What was the purchase price of the bond? $0.00 Round to the nearest cent b. What was the amount of discount or premium on the bond? amount is $0.00

A $85,000, 8.50% bond redeemable at par, with annual coupon payments, is purchased 8 years before maturity to yield 4.50% compounded annually. a. What was the purchase price of the bond? $0.00 Round to the nearest cent b. What was the amount of discount or premium on the bond? amount is $0.00

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2EA: Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the...

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Please solve on white pages.

Not solve in excel.

A $85,000, 8.50% bond redeemable at par, with annual coupon payments, is
purchased 8 years before maturity to yield 4.50% compounded annually.
a. What was the purchase price of the bond?
$0.00
Round to the nearest cent
b. What was the amount of discount or premium on the bond?
amount is
$0.00

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