In: Accounting

# Robinson Corp. issued 10%, 8-year, $2,500,000 PV bonds that pay interest annually. The bonds are date... Robinson Corp. issued 10%, 8-year,$2,500,000 PV bonds that pay interest annually. The bonds are date 1/1/2017 and are issued on that date. The discount rate of interest for such bonds on 1/1/2017 is 8%. What cash proceeds did Robinson Corp receive from issuance of the bonds?

(PV of 1 is 0.54027)                                                         (FV of 1 is 1.85093)

(PV annuity due of 1 is 6.20637)                                    (PV ordinary annuity of 1 is 5.74664)

 a. $2,638,370 b.$2,251,618 c. $2,500,000 d.$2,787,332

## Solutions

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##### The 12​-year, ​$1,000 par value bonds of Waco Industries pay 12percent interest annually. The market... The 12-year,$1,000 par value bonds of Waco Industries pay 12 percent interest annually. The market price of the bond is $1,135, and the market's required yield to maturity on a comparable-risk bond is 9 percent. Compute the bond's yield to maturity.1. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. ##### On January 1,2021, Apple Company issued$840,000 of 8%,10-year bonds for 97.
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