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Cerrena [4.2K]
3 years ago
10

On January 1, a company issues 8%. 5 year, $300,000 bonds that pay interest semiannually. On the issue date, the annual market r

ate of interest is 6%. The following information is taken from present value tables:
Present value of an annuity for 10 periods at 3% 8.5302
Present value of an annuity for 10 periods at 4% 8.1109
Present value of 1 due in 10 periods at 3% 0.7441
Present value of 1 due in 10 periods at 4% 0.6756


What is the issue (selling) price of the bond?

a.$420,000

b.$402,362

c.$300,010

d.$308,107

e.$325,592

Business
1 answer:
gladu [14]3 years ago
7 0

Answer:

Detailed solution is given below:

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