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On January 1, 2019, Jason Company issued $4.6 million of 8-year bonds at a 8% coupon interest rate to be paid annually. The following present
On January 1, 2019, Jason Company issued $4.6 million of 8-year bonds at a 8% coupon interest rate to be paid annually. The following present value factors have been provided:
Time Period | Interest | PV of $1 | PV of a $1 Annuity |
8 | 8% | 0.540 | 5.747 |
8 | 6% | 0.627 | 6.210 |
8 | 10% | 0.467 | 5.335 |
Calculate the issuance price if the market rate of interest is 10%.
$4,111,480.
$4,153,980.
$4,103,980.
$4,600,000.
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