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On January 1, a company issues bonds dated January 1 with a par value of $320,000. The bonds mature in 3 years. The contract rate
On January 1, a company issues bonds dated January 1 with a par value of $320,000. The bonds mature in 3 years. The contract rate is 9%, and Interest is paid semiannually on June 30 and December 31. The market rate is 10%. Using the present value factors below, the issue (selling) price of the bonds is: n= ie 3 9.09 6 4.59 3 10.09 6 5.04 Present Value Present of an Annuity value of $1 2.5313 0.7722 5.1579 0.7679 2.4869 0.7513 5.0757 0.7462 Multiple Choice 573,090 $328,126 $238.784
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