On January 1, a company issues bonds dated January 1 with a par value of $390,000. The bonds mature in 3 years. The contract rate is 9.0%, and interest is paid semiannually on June 30 and December 31. The market rate is 10.0%. Using the present value factors below, the issue (selling) price of the bonds is:n= i= Present Value of an Annuity Present value of $13 9.0?% 2.5313? 0.7722?6 4.5?% 5.1579? 0.7679?3 10.0?% 2.4869? 0.7513?6 5.0?% 5.0757? 0.7462?
A. $399,903.
B. $89,079.
C. $380,097.
D. $390,000.
E. $291,018.
Answer: C
Business
You might also like to view...
When we can be totally honest about feedback, we can be offering ______ feedback.
Fill in the blank(s) with the appropriate word(s).
Business
Describe how the cost of goods sold is calculated when using the periodic inventory system.
What will be an ideal response?
Business
How do employee perceptions of fairness affect motivation?
Business
List the factors for determining whether to prosecute according to the Principles of Federal Prosecution
What will be an ideal response?
Business