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Tavinona Company issued 1,000; $1,000 bonds for a bond issue of $1,000,000. The bonds were...

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Accounting

Tavinona Company issued 1,000; $1,000 bonds for a bond issue of $1,000,000. The bonds were issued for a 10-year term with a coupon rate of 4.5%. The current market rate is 3.5%. Calculate the present (market) value of one bond, then calculate the amount of the bond premium.

Multiple Choice

  • $1,473.90; $473.90

  • $1,049.09; $49.09

  • $1,090.36; $90.36

  • $1,083.76; $83.76

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