Midland Oil has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 25 years. Compute the current price of the bonds if the present yield to maturity is: 7 percent. 10 percent. 13 percent.

I am having a difficult time understanding bonds. Here is a question that stumps me: Record the sale of $4 million of 10 year, 6% corporate bonds priced at 104 plus two months accrued interest. If interest payments are semiannual, and the interest expense account was debited for $53,600 when...