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-   -   Interest on bonds with a premium or a discount. (https://www.askmehelpdesk.com/showthread.php?t=530094)

  • Nov 29, 2010, 02:43 PM
    Gmyers
    Interest on bonds with a premium or a discount.
    The total cost on thirty-nine, ten year, 6 per cent, $1000 bonds that are issued at 98 I need to see the steps on this kind of problem. Thanks
  • Dec 1, 2010, 05:30 PM
    Just Looking

    These bonds were sold at a discount since they were sold at 98% of their face value.

    First compute how much you received for the bonds.

    Second compute the amount you will pay out at maturity, which will be the face value.

    Third, compute the interest which is 6% of the face value per year, times 10 years.

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