Marwick Corporation issues 12%, 5-year bonds with a par value of $1,130,000 and...
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Marwick Corporation issues 12%, 5-year bonds with a par value of $1,130,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%. What is the bond's issue (selling) price, assuming the following Present Value factors:
number of periods (n)=
interest rate (i)=
Present Value of an Annuity (series of payments)
Present value of 1 (single sum)
5
12%
3.6048
0.5674
10
6%
7.3601
0.5584
5
10%
3.7908
0.6209
10
5%
7.7217
0.6139
$1,130,000
$919,244
$1,653,531
$1,217,238
$606,469
Marwick Corporation issues 12%,5-year bonds with a par value of $1,130,000 and semiannual interest payments. On the issue dote, the annual market rate for these bonds is 10%. What is the bond's issue (selling) price, assuming the following Present Value factors: Multiple Choice $1,130,000 5919.244
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