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On January 1, a company issues bonds dated January 1 with a par value of $400,000. The bonds mature in 3 years. The contract rate
On January 1, a company issues bonds dated January 1 with a par value of $400,000. The bonds mature in 3 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 6%. Using the present value tables below, the issue (selling) price of the bonds is: PV of $1 PV of annuity of $1 O $415,358.96 O $410,832.66 O $400,000 O $389,167.44
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