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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%. a. The current market rate is 5.8%. Calculate the present (market) value of one bond, then calculate the amount of the bond discount.

  • $902.40; $97.60

  • $912.19; $87.81

  • $949.86; $50.14

  • $944.27; $55.73

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