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  3. on january 1, a company issues 8%,5-year, $300,0

On January 1, a company issues 8%,5-year, $300,000 bonds that pay interest semiannually....

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Question

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

.

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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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