Question
On January 1, 2020, Swifty Corporation issued eight-year bonds with a face value of $5550000 and a stated interest rate of 6%, payable semiannually on
On January 1, 2020, Swifty Corporation issued eight-year bonds with a face value of $5550000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are:
Present value of 1 for 8 periods at 6% 0.627Present value of 1 for 8 periods at 8% 0.540Present value of 1 for 16 periods at 3% 0.623Present value of 1 for 16 periods at 4% 0.534Present value of annuity for 8 periods at 6% 6.210Present value of annuity for 8 periods at 8% 5.747Present value of annuity for 16 periods at 3% 12.561Present value of annuity for 16 periods at 4% 11.652 The issue price of the bonds is
a. $5547780.
b. $4910751.
c. $4903758.
d. $4937058.
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