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Marwick Corporation issues 12%, 5 year bonds with a par value of $1,250,000 and semiannual interest payments. On the issue date, the annual market rate
Marwick Corporation issues 12%, 5 year bonds with a par value of $1,250,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%. What is the bond's issue (selling) price, assuming the following Present Value factors: n= 5 10 i= 12% 6% 10% 5% Present Value of an Annuity 3.6048 7.3601 3.7908 7.7217 Present value of $1 0.5674 0.5584 0.6209 0.6139 10 Multiple Choice $1,829,128 $1,250,000
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