Question
Reveille Company issued $500,000 of 4%, 10-year bonds on January 1, 2010. Interest is to be paid semi-annually on December 31. The market rate at
Reveille Company issued $500,000 of 4%, 10-year bonds on January 1, 2010. Interest is to be paid semi-annually on December 31. The market rate at the time of the bond issue is 2%. Reveille uses the effective interest method of amortization. What is the selling price of bonds?
| a. | $499,976 | |
| b. | $500,000 | |
| c. | $589,802 | |
| d. | $590,226 | |
| e. | none of the above |
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Auditing And Assurance Services
Authors: Timothy J Louwers, Robert J. Ramsay, David Sinason, Jerry R Strawser
1st Edition
0072954442, 9780072954449
