Answer:
The issue price of the bond is $44,330,000
Explanation:
The issue price of the bond can be computed using the pv formula in excel,which is given as =-pv(rate,nper,pmt,fv)
rate is the semi-annual yield to maturity on the bond which is 7%/2=3.5%
nper is the number of coupon payments the bond would make before maturity,which 15 years multiplied by 2=30
pmt is the semi-annual interest payment of the bond i.e 8%/2*$40.6 million=$1.624 million
The fv is the face value of the bond repayable at maturity which is $40.6 million
=-pv(3.5%,30,1.624,40.6)
pv=$44.33 million
Answer:
c) results of business activities should be reported in an appropriate monetary unit.
Explanation:
The unit of measure concept is a standard convention used in accounting, under which all transactions must be consistently recorded using the same currency so the periods are comparable.
