Rodgers Equipment Company sold a ten-year, 6% bond issue at 102.5. Rodgers received proceeds of $256,250 from the sale of these bonds. Required:Determine the face value of these bonds.
What will be an ideal response?
$250,000
Issue price of $256,250 = Face value (the unknown) × 102.5
Face value = $256,250 ÷ 1.025 = $250,000
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A fine luggage maker was struggling with heavy debt and a sharp decline in customers, and it eventually declared bankruptcy. The company followed which grand strategy?
A. Growth B. Stability C. Defensive D. Reduction E. Reactive
Transaction information stored in accounting records is a good secondary source of research information
Indicate whether the statement is true or false
Calculate the future value of an annuity of $5,000 each year for eight years, deposited at 6 percent.
What will be an ideal response?
Tasty Pastry Bakery Shop is having problems with its sticky buns. The bottoms are burning and the customers are complaining. Management has identified the problem and is looking into possible alternative solutions
They could change the recipe and reduce the sugar, which burns quickly. They could change the type of pan they are using. They could lower the temperature of the oven. They have tried changing the type of pan from steel cookie sheets to glass pans; however, the buns are still burning. What should they do now?A) keep using the glass pans and hope the buns stop burning B) give up and decide not to bake the sticky buns anymore C) switch back to metal pans and accept that the buns will be a little crisp D) try reducing the amount of sugar or lowering the temperature E) lay aside the issue for a while to gain clarity