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On January 2, 2012, Prebish Corporation issued exist1, 500,000 of 10% bonds to yield 11% due December 31, 2021. Interest on the bonds is payable
On January 2, 2012, Prebish Corporation issued exist1, 500,000 of 10% bonds to yield 11% due December 31, 2021. Interest on the bonds is payable annually cash December 31. The bonds are callable at 101 (i.e., at 101% of face amount), and on January 2, 2015, Prebish called exist1,000,000 face amount of the bonds and retired them. (a) Determine the price of the Prebish bonds when issued on January 2, 2012. (For calculation purpose, use 5 decimal places are displayed in the factor table provided and round final answer to 0 decimal places, e.g. 5.275.)
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