Question
On January 1, 2017, Waterway Industries issued eight-year bonds with a face value of $6050000 and a stated interest rate of 8%, payable semiannually on
On January 1, 2017, Waterway Industries issued eight-year bonds with a face value of $6050000 and a stated interest rate of 8%, payable semiannually on June 30 and December 31. The bonds were sold to yield 10%. Table values are:
Present value of 1 for 8 periods at 8% 0.540Present value of 1 for 8 periods at 10% 0.467Present value of 1 for 16 periods at 4% 0.534Present value of 1 for 16 periods at 5% 0.458Present value of annuity for 8 periods at 8% 5.747Present value of annuity for 8 periods at 10% 5.335Present value of annuity for 16 periods at 4% 11.652Present value of annuity for 16 periods at 5% 10.838 The present value of the interest is
a. $2622796.
b. $2781548.
c. $2819784.
d. $2582140.
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