The gross increases in retained earnings attributable to business activities are called
1 answer:
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Answer:
normal bonds: $19,000,000 = 19,000 bonds
zero coupon bond: $24,366,207.91 dollars = 24,367 bonds
Explanation:
For the zero coupon bond, we will need to calculate the value which discounted at 10% per year during 25 years equals 19,000,000:
Principal 19,000,000.00
time 25.00
rate 0.01000
Amount 24,366,207.91
For the normal bonds, the company will issue the bonds at par the bond rate matches the market rate. It will issue for a face value of 19,000,000