HOMEWORK solutions 10a

HOMEWORK solutions 10a - HOMEWORK solutions: Ch. 10, part a...

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HOMEWORK solutions: Ch. 10, part a E10–1. 1. Bond principal, par value, or face value 2. Par value or face value 3. Face value or face value 4. Stated rate, coupon rate, or contract rate 5. Debenture 6. Callable bonds 7. Convertible bonds E10–4. CASE A: $100,000 x 0.6806. ........................................................ $ 68,060 $8,000 x 3.9927. ............................................................ 31,942 Issue price (market and stated rate same). ................... $100,002 (at par; $2 rounding error) CASE B: $100,000 x 0.7473. ........................................................ $ 74,730 $8,000 x 4.2124. ............................................................ 33,699 Issue price (market rate less than stated rate). ............. $108,429 (at a premium) CASE C: $100,000 x 0.6209. ........................................................ $ 62,090 $8,000 x 3.7908. ............................................................ 30,326
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HOMEWORK solutions 10a - HOMEWORK solutions: Ch. 10, part a...

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