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On December? 31, 2018?, when the market interest rate is 10?%,McCann Realty issues $...

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Accounting

On December? 31, 2018?, when the market interest rate is 10?%,McCann Realty issues $ 400 comma 000 of 7.25?%, 10?-year bondspayable. The bonds pay interest semiannually. Determine the presentvalue of the bonds at issuance.

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3.8 Ratings (447 Votes)
Concept for determining issue price Bonds issue price is calculated by ADDING the Discounted face value of bonds payable at applicable market rate    See Answer
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In: AccountingOn December? 31, 2018?, when the market interest rate is 10?%,McCann Realty issues $ 400...On December? 31, 2018?, when the market interest rate is 10?%,McCann Realty issues $ 400 comma 000 of 7.25?%, 10?-year bondspayable. The bonds pay interest semiannually. Determine the presentvalue of the bonds at issuance.

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