Question
On January 1, 2020, Marigold Corp. issued ten-year bonds with a face amount of $3700000 and a stated interest rate of 6% payable annually on
On January 1, 2020, Marigold Corp. issued ten-year bonds with a face amount of $3700000 and a stated interest rate of 6% payable annually on January 1. The bonds were priced to yield 9%. Present value factors are as follows:
| At 6% | At 9% | |||
| Present value of 1 for 10 periods | 0.558 | 0.422 | ||
| Present value of an ordinary annuity of 1 for 10 periods | 7.360 | 6.418 |
The total issue price of the bonds was
|
| $2986196. |
|
| $3700000. |
|
| $3589000. |
|
| $3478000. |
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CLEP Financial Accounting Study Guide
Authors: Passyourclass
1st Edition
1614330115, 978-1614330110
