Question: When a bond is issued, what is its present value?

Question: When a bond is issued, what is its present value?

Expert Solution

Step 1: Definition of payable

The bonds payable is a type of long-term debt in which the company raises money to fulfill its large amount of money needs.

Step 2: Present value of bonds

The market value of the bonds is knowns as the present value of the bonds.

The present value is the sum of two items:

The present value of the principal and the present value of the stated interest.

The long term-debt is a debt that is not due in one year.

Sahil Dangi answered 2 years ago

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