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21. On January 1, 2019, Jason Company issued $5 million of 10-year bonds at a 10% coupon interest rate to be paid annually. The following
21. On January 1, 2019, Jason Company issued $5 million of 10-year bonds at a 10% coupon interest rate to be paid annually. The following present value factors have been provided: PV of a $1 Annuity Time Period Interest PV of $1 10% 0.386 6.140 10 0.463 6.710 8% 10 5.650 12% 0.322 10 Calculate the issuance price if the market rate of interest is 12 %. a) $4,427,500. b) $4,477,500. c) $4,435,000. d) $5,000,000
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