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Reed Corp. sells $500,000 of bonds to private investors. The bonds are due in five...

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Accounting

Reed Corp. sells $500,000 of bonds to private investors. The bonds are due in five years, have a 6% coupon rate, and interest is paid semiannually. The bonds were sold to yield 4%. What proceeds does Reed receive from the investors?

Select one:

a. $544,913

b. $544,518

c. $457,876

d. $457,349

e. None of these are correct.

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