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Dempsey Railroad Co. is about to issue $290,000 of 6-year bonds paying an 12% interest rate,...

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Accounting

Dempsey Railroad Co. is about to issue $290,000 of 6-year bondspaying an 12% interest rate, with interest payable semiannually.The discount rate for such securities is 10%.

Click here to view the factor table.

(For calculation purposes, use 5 decimal places asdisplayed in the factor table provided.)

How much can Dempsey expect to receive for the sale of these bonds?(Round answer to 0 decimal places, e.g.2,525.)

Dempsey can expect to receive

$   

Answer & Explanation Solved by verified expert
4.5 Ratings (663 Votes)
Dempsey can expect to receive 315704 or 315703 Concept Bonds issue price is calculated by ADDING the Discounted face value of bonds    See Answer
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Transcribed Image Text

Dempsey Railroad Co. is about to issue $290,000 of 6-year bondspaying an 12% interest rate, with interest payable semiannually.The discount rate for such securities is 10%.Click here to view the factor table.(For calculation purposes, use 5 decimal places asdisplayed in the factor table provided.)How much can Dempsey expect to receive for the sale of these bonds?(Round answer to 0 decimal places, e.g.2,525.)Dempsey can expect to receive$   

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