Shekinah S.

asked • 02/23/16

If the market interest rate is 7%, what type of bond price can Nooks expect for the bonds?

Nooks is planning to issue $470,000 of 5%, 10 year bonds payable to borrow for a major expansion. The owner, Simon Nooks, asks your advice on some related matters.
 
If the market interest rate is 7%, what type of bond price can Nooks expect for the bonds?
 
 
I have to choose one of the three
-Face Value 
-Discount Value
-Premium Value

1 Expert Answer

By:

Patricia N. answered • 07/02/16

Tutor
New to Wyzant

Retired Accountancy Instructor

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