Determine the purchase price of the debt securities

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Question 1: Determine the purchase price of the following debt securities that AC Company intends to purchase

a) 10%, 5,000,000 face value, five year bonds dated June 30, 2020, for purchase on July 1, 2020, interest payment dates are June 30 and December 31.

b) 6% 10,000,000 face value, ten year bonds, dated June 30, 2018, for purchase on July 1, 2020, interest payment date is June 30. The = market rate of interest on July 1, 2020 is 8%

Reference no: EM132895876

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