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-   -   When an accounting question gives a bond rate of 93% is the value .9325 (https://www.askmehelpdesk.com/showthread.php?t=437161)

  • Jan 20, 2010, 11:42 AM
    bryonsieferd
    when an accounting question gives a bond rate of 93¼% is the value .9325
    the question asks: Randell Company issues 7%, 10-year bonds with a par value of $150,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 93¼. The straight-line method is used to allocate interest expense. I am trying to find the value of the selling price at 93 1/4
  • Jan 22, 2010, 11:49 PM
    morgaine300

    Yes, it's .9325. 93 1/4% = 93.25%, with the decimal moved twice is .9325.

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