Determine the price of the bonds-singleton computers

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Reference no: EM132423179

Problem: On June 30, 2018, Singleton Computers issued 8% stated rate bonds with a face amount of $200 million. The bonds mature on June 30, 2033 (15 years). The market rate of interest for similar bond issues was 7% (3.5% semiannual rate). Interest is paid semiannually (4.0%) on June 30 and December 31, beginning on December 31, 2018.

Required:

Question 1: Determine the price of the bonds on June 30, 2018.

Question 2: Calculate the interest expense Singleton reports in 2018 for these bonds using the effective interest method.

Reference no: EM132423179

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