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On January 1,2020 , Elm Co. issued $200,000,5%,10-year bonds at 95 , when the market rate of interest was 6%. interest is payable semiannually, on
On January 1,2020 , Elm Co. issued $200,000,5%,10-year bonds at 95 , when the market rate of interest was 6%. interest is payable semiannually, on 1/1 and 7/1. How much does Elm Company receive when issuins the bonds and how much does it pay over the life of the bonds (principle and cash interest)? Receives $190,000; Pays $300,000 Receives $200,000: Pays =$290,000 Receives =$200,000; Pays =$390,000 Receives $190,000; Pays =$100,000 Receives $190,000; Pays =$200,000
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