Quincy Co. on January 1, 2021, issued ten-year bonds with a face value of $5,000,000 and a stated interest rate of 10%, payable annually on December 31.
The bonds were sold to yield 12%.
Table values are:
Present value of 1 for 10 periods at 10% .386
Present value of 1 for 10 periods at 12% .322
Present value of 1 for 20 periods at 5% .377
Present value of 1 for 20 periods at 6% .312
Present value of annuity for 10 periods at 10% 6.145
Present value of annuity for 10 periods at 12% 5.650
Present value of annuity for 20 periods at 5% 12.462
Present value of annuity for 20 periods at 6% 11.470
The issue price of the bond is

QUESTION 20 Quincy Co. on January 1, 2021, issued ten-year bonds with a face value of $5,000,000 and a stated interest rate of 10%, payable annually on December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 10 periods at 10% .386 Present value of 1 for 10 periods at 12% .322 Present value of 1 for 20 periods at 5% .377 Present value of 1 for 20 periods at 6% .312 Present value of annuity for 10 periods at 10% 6.145 Present value of annuity for 10 periods at 12% 5.650 Present value of annuity for 20 periods at 5% 12.462 Present value of annuity for 20 periods at 6% 11.470 The issue price of the bond is O $5,617,000 $4,427,500 $1,560,000 O $4,435,000