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On January 1, 2025, Cullumber Co. issued five-year bonds with a face value of $580,000 and a stated interest rate of 12% payable semiannually
On January 1, 2025, Cullumber Co. issued five-year bonds with a face value of $580,000 and a stated interest rate of 12% payable semiannually on July 1 and January 1. The bonds were sold to yield 10%. Present value table factors are: Present value of 1 for 5 periods at 10% 0.62092 Present value of 1 for 5 periods at 12% 0.56743 Present value of 1 for 10 periods at 5% 0.61391 Present value of 1 for 10 periods at 6% 0.55839 Present value of an ordinary annuity of 1 for 5 periods at 10% 3.79079 Present value of an ordinary annuity of 1 for 5 periods at 12% Present value of an ordinary annuity of 1 for 10 periods at 5% Present value of an ordinary annuity of 1 for 10 periods at 6% 3.60478 7.72173 7.36009 Click here to view factor tables Calculate the issue price of the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,582.) Issue price of bonds $ Save for Later Attempts: 0 of 1 used Submit Answer
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