On January 1, a company issues 8%, 5-year, $300,000 bonds that pay interest semiannually. On the issue date, the annual market rate of interest is 6%. The following information is taken from present value tables: ? Present value of an annuity (series of payments) for 10 periods at 3%8.5302Present value of an annuity (series of payments) for 10 periods at 4%8.1109Present value of 1 (single sum) due in 10 periods at 3%0.7441Present value of 1 (single sum) due in 10 periods at 4%0.6756What is the issue (selling) price of the bond?
A. $308,107
B. $325,592
C. $300,010
D. $420,000
E. $402,362
Answer: B
You might also like to view...
While international business as a discipline is relatively new, international business as a business practice is not.
Answer the following statement true (T) or false (F)
The __________ determines what access should be granted
A. authentication server B. policy server C. supplicant D. access requestor
The U.S. government has jurisdiction to tax individuals who are not U.S. citizens but who earn income from a source within the United States.
Answer the following statement true (T) or false (F)
Apple Two Enterprises expects to generate sales of $5,950,000 for fiscal 2014; sales were $3,450,000 in fiscal 2013. Assume the following figures for the fiscal year ending 2013: cash $70,000;
accounts receivable $250,000; inventory $400,000; net fixed assets $520,000; accounts payable $235,000; and accruals $155,000. Use the percent-of-sales method to forecast accounts payable for the fiscal year ending 2014. A) $212,036 B) $405,290 C) $619,619 D) $155,000