Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 3 on january 1,2021, tjmusk co. issued

Question 3 On January 1,2021, TJMusk Co. issued ten-year bonds with...

90.2K

Verified Solution

Question

Accounting

Question 3
On January 1,2021, TJMusk Co. issued ten-year bonds with a face amount of $5,000,000 and annual interest of $400,000. The bonds were priced to yield a market rate of interest 10%. Present or future value factors are as follows:
Present value of 1 for 10 periods
Present value of an ordinary annuity of 1 for 10 periods
Future value of 1 for 10 periods
Future value of an ordinary annuity of 1 for 10 periods
At 10%
0.386
6.145
2.594
15.937
The total issue price of the bonds was
a. $4,900,000.
b. $5,000,000.
c. $4,388,000.
d. None of the above.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Consider a car traveling on a highway. If the car travels 100 miles in 2 hours,...

Operations Management
1.2K views

You are asked to provide sales forecasts of several products for a large biscuit manufacturing company....

Biology
1.2K views

lows the computer to connect to a network O Modem O Switch O Network interface...

Physics
1.2K views

A satellite is revolving very close to the earth surface in a circular orbit has...

Physics
1.2K views

Network shown in the figure is part of a circuit The current is 2 A...

Physics
1.2K views

It is hotter at the same distance over the top of a fire than it...

Basic Math
1.2K views

Find all horizontal and vertical asymptotes (if any). (If an answer does not exist, enter...

Accounting
1.2K views

Following is information on two alternative Investments being considered...

Accounting
1.2K views

Suppose that the term structure of interest rates for the next five years is as...

Accounting
1.2K views

Case 8-33 (Algo) Master Budget with Supporting Schedules [LO8-2, LO8-4, LO8-8, LO8-9, LO8-10]...

Accounting
1.2K views

Requirements: ...

Finance
1.2K views

Please refer to data table and requirements for your answer. Right click on image...