Determine the total amount of cash

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Reference no: EM132662825

Aberdeen Ltd., which uses IFRS and has a December 31 year-end, issued a 5-year bond with a maturity amount or par value of $100,000 on April 1, 20X1. The bond matures on March 31, 20X6 and has a stated interest rate of 5%. When issued, the market interest rate was 6%. The bond pays interest semi-annually on September 30 and March 31 commencing on September 30, 20X1. In the blank boxes below, please provide the amounts asked for in each of the following questions in this order (when entering amounts please do not use commas, negative signs, dollar signs or cents - please round your answer to the nearest dollar).

Problem 1: The price that the bond will sell for on April 1, 20X1.

Problem 2: Assume that the bond sells three months late on July 1, (interest payment dates and maturity dates are unchanged). Determine the total amount of cash, including accrued interest that Aberdeen will receive when selling the bond.

Reference no: EM132662825

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