ACC 311 Quiz 8 - ACC 311 (Atiase) Name: KEY (25 points)...

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ACC 311 (Atiase) Name: KEY (25 points) Quiz #8A 11/18/8010 Class Time: 9:30 and 11:00am On January 1, 2004, Lowry Co. issued ten-year bonds with a face value of $200,000 and a stated interest rate of 10%, payable semi-annually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 10 periods at 10% . ................................... .386 Present value of 1 for 10 periods at 12% . ................................... .322 Present value of 1 for 20 periods at 5% . ..................................... .377 Present value of 1 for 20 periods at 6% . ..................................... .312 Present value of annuity for 10 periods at 10% . ......................... 6.145 Present value of annuity for 10 periods at 12% . ......................... 5.650 Present value of annuity for 20 periods at 5% . ........................... 12.462 Present value of annuity for 20 periods at 6% . ........................... 11.470 Instructions (A) Calculate the issue price of the bonds. PV of annuity if interest payments (5%*200,000), n=20; i=6%
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This note was uploaded on 06/07/2011 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas at Austin.

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ACC 311 Quiz 8 - ACC 311 (Atiase) Name: KEY (25 points)...

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