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Question: on january 1 a company issues bonds dated january 1...

Question details

On January 1, a company issues bonds dated January 1 with a par value of $310,000. The bonds mature in 3 years. The contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The market rate is 9%. Using the present value factors below, the issue (selling) price of the bonds is:

n= i= Present Value of an Annuity Present value of $1
3 8.0 % 2.5771 0.7938
6 4.0 % 5.2421 0.7903
3 9.0 % 2.5313 0.7722
6 4.5 % 5.1579 0.7679

Multiple Choice

  • $317,993.

  • $302,007.

  • $310,000.

  • $63,958.

  • $238,049.

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