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Boston Co. issued $880,000 of four-year, 13% bonds, with interest payable semiannually, at a market (effective) interest rate of 12%. Determine the present value of

Boston Co. issued $880,000 of four-year, 13% bonds, with interest payable semiannually, at a market (effective) interest rate of 12%.

Determine the present value of the bonds payable. Round answer to the nearest cent.

Hint: Step 1 is to determine the amount of the semiannual interest payments so that you have it to enter into the calculator or spreadsheet.

A. $880,000.00

B. $876308.30

C. $907,323.09

D. $457,600

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