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On January 1, Dallas Corp. issued $600,000, 12% APR, 5-year bonds with interest payable on July 1 and January 1. The market rate of interest
On January 1, Dallas Corp. issued $600,000, 12% APR, 5-year bonds with interest payable on July 1 and January 1. The market rate of interest was 10% APR. Determine the selling price of the bonds.
Note: PV$1(5%, 10n) = 0.6139 PV$1(6%, 10n) = 0.5584
PVOA(5%, 10n) = 7.7217 PVOA(6%, 10n) = 7.3601
A. $509,009
B. $600,000
C. $633,304
D. $646,321
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