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Air Destinations issues a bond due in 10 years with a stated interest rate of 6% and a face amount of $500,000. Interest payments
Air Destinations issues a bond due in 10 years with a stated interest rate of 6% and a face amount of $500,000. Interest payments are made semiannually. The market rate for this type of bond is 7%. What is the issue price of the bond (rounded to the nearest whole dollar)? (Use PV of $1 and PVA of $1) Multiple Choice $537,194. $359,528, $500,000. $464,471
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Introduction to Accounting An Integrated Approach
Authors: Penne Ainsworth, Dan Deines
6th edition
78136601, 978-0078136603
