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Find what is the purchase price of the investment

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Reference no: EM132727142

On January 1, 2019, Shimmery Company purchased a 6-year bond with a face amount of 6,000,000 to yield 8%. Interest and principal is to be paid every December 31. An active market is available so there is no problem to ascertain the fair value of the bonds. The stated rate of the bond is 11.80%. The bond is trading:

December 31, 2019 96

December 31, 2020 101

December 31, 2021 98.5

December 31, 2022 99.75

Use four decimal places only.

Problem 1: What is the purchase price of the investment?

Reference no: EM132727142

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