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Buchanan Corporation issues $500,000 of 11% bonds that are due in 10 years and pay interest semi- annually. At the time of issue, the market
Buchanan Corporation issues $500,000 of 11% bonds that are due in 10 years and pay interest semi- annually. At the time of issue, the market rate for such bonds is 10%. Using time value of money tables, a financial calculator, and computer spreadsheet functions, calculate the bonds' issue price. (Hint: Refer to Appendix 3B for tips on calculating.)
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