Question
Dave's Percussion Co. issued $50,000 of 8-year, zero-coupon debenture bonds on January 1 when the market yield was 6%. The bond agreement stated that compounding
Dave's Percussion Co. issued $50,000 of 8-year, zero-coupon debenture bonds on January 1 when the market yield was 6%. The bond agreement stated that compounding was semiannual. How much are the proceeds of the bond issue?
A) $50,000
B) $34,922
C) $25,080
D) $31,158
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Financial Accounting
Authors: Robert Kemp, Jeffrey Waybright
4th edition
978-0134125053, 9780134114781, 134125053, 134114787, 978-0134436111
