Queenie2022-06-08 00:19:44

A firm issues a $10 million bond with a 6% coupon rate, 4-year maturity, and annual interest payments when market interest rates are 7%. If the market rate changes to 8% and the bonds are carried at amortized cost, the book value of the bonds at the end of the first year will be？ 这道题我怎样都算不出正确答案，我的方法是：先用计算器算出年初bond payable，其中I/Y是8，然后利息是得出的数*8%，但是答案给的却是用7%算的，我不理解！利息不是改成了8%了么？ 以下是答案解析：8. C The new book value = beginning book value + interest expense - coupon payment = $9,661,279 + $676,290 - $600,000 = $9,737,569. The interest expense was calculated in question 7. Alternatively, changing N from 4 to 3 and calculating the PV will yield the same result. The change in market rates will not affect amortized costs. (Module 24.2, LOS 24.b)