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    bryonsieferd's Avatar
    bryonsieferd Posts: 1, Reputation: 1
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    #1

    Jan 20, 2010, 11:42 AM
    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
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jan 22, 2010, 11:49 PM

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