Compute the issue (sale) price on july 1, 2008


Thompson Corporation is planning to issue $100,000, five-year, 8-percent bonds. Interest is payable semi-annually each June 30 and December 31. All of the bonds will be sold on July 1, 2008; they mature on June 30, 2013. Compute the issue (sale) price on July 1, 2008, if the yield is: (a) 8 percent, (b) 7.5 percent, and (c) 8.5 percent.

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Accounting Basics: Compute the issue (sale) price on july 1, 2008
Reference No:- TGS089074

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