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Marwick Corporation issues 12%, 5-year bonds with a par value of $1,130,000 and...

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Accounting

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
image

  • $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

Answer & Explanation Solved by verified expert
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