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Excel Applications for Accounting Principles 4th Edition by Gaylord Smith
Edition 4ISBN: 978-1111581565Excel Applications for Accounting Principles 4th Edition by Gaylord Smith
Edition 4ISBN: 978-1111581565 Exercise 3
WHAT-IF ANALYSIS
Find the effective interest rate for $5,000,000 of 8-year, 8% bonds (interest payable annually), which were issued for $4,670,365. To do this, enter the known information in the Data Section and experiment with different effective interest rates until you get a bond price of exactly $4,670,365. ( Hint : You will have to use an effective interest rate with one decimal point.) Print the worksheet when done.
Find the effective interest rate for $5,000,000 of 8-year, 8% bonds (interest payable annually), which were issued for $4,670,365. To do this, enter the known information in the Data Section and experiment with different effective interest rates until you get a bond price of exactly $4,670,365. ( Hint : You will have to use an effective interest rate with one decimal point.) Print the worksheet when done.
Explanation
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Bond issue price is below the face value...
Excel Applications for Accounting Principles 4th Edition by Gaylord Smith
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