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Robinson Corp. issued 10%, 8-year, $2,500,000 PV bonds that pay interest annually. The bonds are date 1/1/2017 and are issued on that date. The discount
Robinson Corp. issued 10%, 8-year, $2,500,000 PV bonds that pay interest annually. The bonds are date 1/1/2017 and are issued on that date. The discount rate of interest for such bonds on 1/1/2017 is 8%. What cash proceeds did Robinson Corp receive from issuance of the bonds?
(PV of 1 is 0.54027) (FV of 1 is 1.85093)
(PV annuity due of 1 is 6.20637) (PV ordinary annuity of 1 is 5.74664)
| a. | $2,638,370 | |
| b. | $2,251,618 | |
| c. | $2,500,000 | |
| d. | $2,787,332 |
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