six years ago the Singleton Company issued 20-year bonds with a 14% annual coupon rate at their 1000 par value
fv= (1000*.09)+1000= 1090, PV=-1000, n=6, pmt= 140 cpt i/y= 15.027%
To calculate the annual interest payment for the Singleton Company's bonds, we need to multiply the coupon rate (14%) by the par value ($1000).
Annual interest payment = Coupon rate * Par value
Annual interest payment = 14% * $1000 = $140
Since the bonds were issued six years ago, we can calculate the remaining maturity period by subtracting 6 years from the 20-year term.
Remaining maturity period = 20 - 6 = 14 years
Now, we have the annual interest payment ($140) and the remaining maturity period (14 years).
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