On January 1, a company issues 8%,5-year, $300,000 bonds that pay interest semiannually....
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Accounting
On January 1, a company issues
8%,5
-year,
$300,000
bonds that pay interest semiannually. On the issue date, the annual market rate of interest is
6%
. The following\ information is taken from present value tables:\ Present value of an annuity (series of payments) for 10 periods at
3%
\ Present value of an annuity (series of payments) for 10 periods at
4%
\ Present value of 1 (single sum) due in 10 periods at
3%
\ Present value of 1 (single sum) due in 10 periods at
4%
\ 8.5302\ 8.1109\ 0.7441\ 0.6756\ What is the issue (selling) price of the bond?\ Multiple Choice\
$320,560.80
.\
$403,171.62
.\
$300,010.00
\
$308,107.00
.\
$325,592.40
.
On January 1, a company issues 8%,5-year, $300,000 bonds that pay interest semiannually. On the issue date, the annual market rate of interest is 6%. The following information is taken from present value tables: What is the issue (selling) price of the bond? Multiple Choice $320,560.80. $403,171.62. $300,010.00. $308,107.00. $325,592.40
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