On January 1 of this year, Cunningham Corporation issued bonds with a face value of...
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Accounting
On January 1 of this year, Cunningham Corporation issued bonds with a face value of $203,000 and a coupon rate of 6 percent. The bonds mature in 30 years and pay interest annually every December 31. When the bonds were sold, the annual market rate of interest was 8 percent. The company uses the effective-interest amortization method. By December 31 of this year, the annual market rate of interest had increased to 10 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) P10-5 Part 1 Required: 1.
What is the issuance price of the bonds on January 1? (Round your final answers to nearest whole dollar amount.)
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