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On January 2, 2019, Flint Corporation issued $1,950,000 of 10% bonds to yield 11% due December 31, 2028. Interest on the bonds is payable annually each December 31. The bonds are callable at 101 (i.e., at 101% of face amount), and on January 2, 2022, Flint called $1,170,000 face amount of the bonds and retired them. Determine the price of the Flint bonds when issued on January 2, 2019. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places, e.g. 5,275.)

On January 2, 2019, Flint Corporation issued $1,950,000 of 10% bonds to yield 11% due December 31, 2028. Interest on the bonds is payable annually each December 31. The bonds are callable at 101 (i.e., at 101% of face amount), and on January 2, 2022, Flint called $1,170,000 face amount of the bonds and retired them. Determine the price of the Flint bonds when issued on January 2, 2019. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places, e.g. 5,275.)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 8RE
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On January 2, 2019, Flint Corporation issued $1,950,000 of 10% bonds to yield 11% due December 31, 2028. Interest on the bonds is payable annually each December 31. The bonds are callable at 101 (i.e., at 101% of face amount), and on January 2, 2022, Flint called $1,170,000 face amount of the bonds and retired them. Determine the price of the Flint bonds when issued on January 2, 2019. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places, e.g. 5,275.)
Transcribed Image Text:On January 2, 2019, Flint Corporation issued $1,950,000 of 10% bonds to yield 11% due December 31, 2028. Interest on the bonds is payable annually each December 31. The bonds are callable at 101 (i.e., at 101% of face amount), and on January 2, 2022, Flint called $1,170,000 face amount of the bonds and retired them. Determine the price of the Flint bonds when issued on January 2, 2019. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places, e.g. 5,275.)
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