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Olay Inc. issues $60,000, 8%, 10-year bonds payable on January 1. Calculate the selling price of the bonds under the following separate assumptions. Round your
Olay Inc. issues $60,000, 8%, 10-year bonds payable on January 1. Calculate the selling price of the bonds under the following separate assumptions.
- Round your answer to the nearest whole number.
- Do not use negative signs with your answers.
| a. The bonds pay cash interest annually ($4,800) and the market rate of interest on similar bonds is 10%. | Answer | |
| b. The bonds pay cash interest annually ($4,800) and the market rate of interest on similar bonds is 8%. | Answer | |
| c. The bonds pay cash interest annually ($4,800) and the market rate of interest on similar bonds is 6%. | Answer | |
| d. The bonds pay cash interest semiannually ($2,400) and the market rate of interest on similar bonds is 10%. | Answer | |
| e. The bonds pay cash interest semiannually ($2,400) and the market rate of interest on similar bonds is 8%. | Answer | |
| f. The bonds pay cash interest semiannually ($2,400) and the market rate of interest on similar bonds is 6%. | Answer |
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