Question
Question 21 June Howard Company issues bonds with a par value of $1,800,000 on their issue date. The bonds mature in 5 years and pay
Question 21
June Howard Company issues bonds with a par value of $1,800,000 on their issue date. The bonds mature in 5 years and pay 6% annual interest in semiannual payments. On the issue date, the market rate of interest (annual) is 8%. Compute the price of the bonds on their issue date. (The answer assumes the use of a financial calculator. (If PV tables are used, select the closest answer from the options provided.)
| A. | $1,654,004 | |
| B. | $1,547,345 | |
| C. | $1,685,148 | |
| D. | $2,660,447 |
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Financial Accounting An Introduction To Concepts Methods And Uses
Authors: Clyde P. Stickney, Roman L. Weil
9th Edition
0030259622, 978-0030259623
