Question

on january 1 of this year, nowell company issued bonds with a face value of $240,000 and a coupon rate of 6.0 percent. the bonds mature in five years and pay interest semiannually every june 30 and december 31. when the bonds were sold, the annual market rate of interest was 6.0 percent. (fv of $1, pv of $1, fva of $1, and pva of $1) note: use appropriate factor(s) from the tables provided. p10-2 part 1 required: 1.what was the issue price on january 1 of this year?

Answer 1

The issue price of the bond on January 1 of this year is $240,000.

Step-by-step explanation:

To calculate the issue price on January 1, we need to calculate the present value of the bond. Since the coupon rate is the same as the market rate of interest, the bond will be issued at its face value. The face value of the bond is $240,000, so the issue price on January 1 of this year is also $240,000.