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Calculate the issue price for the bonds

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Reference no: EM132919141

On 1 July 2022, Kelly ltd issued 5 year bonds with a total face value of 1 000 000 and which paid interest of 100 000 annually in arrears. The market required interest rate for Kelly ltd bonds was 14 per cent

  • Cumulative present value factor at 14% for 5 years = 3.4331
  • Present value factor at 14% for the 5th year = 0.5194

Problem 1: Calculate the issue price for the bonds

Reference no: EM132919141

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