ACCT 361 Study Guide - Quiz Guide: Historical Cost, Promissory Note
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Use this table, as needed, for questions 1-17. Pv of ,000,000 payment in 3 years (discount rate = 10%) Pv of ,000,000 payment in 3 years (discount rate = 9%) Pv of ,000,000 payment in 3 years (discount rate = 8%) Pv of ,000 payments each year for 3 years (discount rate = 10%) Pv of ,000 payments each year for 3 years (discount rate = 9%) Pv of ,000 payments each year for 3 years (discount rate = 8%) The bonds pay interest annually every december 31 at a coupon rate of 9%. The prevailing market rate of interest at the beginning of 2018 was 10%. Abc company issues bonds with a face value of ,000,000 to investors on january 1, 2018. The bonds pay interest annually every january 1 at a coupon rate of 9%. The prevailing market rate of interest at the beginning of 2018 was 8%.
