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A Corporation issues a bond that has a stated interest rate of 12%, face amount of $80,000, and is due in 5 years. A Corporation
A Corporation issues a bond that has a stated interest rate of 12%, face amount of $80,000, and is due in 5 years. A Corporation uses the accrual basis of accounting. Interest payments are made semiannually. The market rate for this type of bond is 10%. What is the issue price of the bond? (Round up to the next highest penny if necessary. For example: $.015 through $.019 should be rounded up to $.02.)
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$86,117.10
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$88,125.98
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$85,247.27
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$86,427.38
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