Question
Sheridan Company issues $25800000, 8%, 5-year bonds dated January 1, 2020 on January 1, 2020. The bonds pay interest semiannually on June 30 and December
Sheridan Company issues $25800000, 8%, 5-year bonds dated January 1, 2020 on January 1, 2020. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 7%. What are the proceeds from the bond issue?
| ff | 3.5% | 4.0% | 7% | 8% |
| Present value of a single sum for 5 periods | 0.84197 | 0.82193 | 0.71299 | 0.68058 |
| Present value of a single sum for 10 periods | 0.70892 | 0.67556 | 0.50835 | 0.46319 |
| Present value of an annuity for 5 periods | 4.51505 | 4.45182 | 4.10020 | 3.99271 |
| Present value of an annuity for 10 periods | 8.31661 | 8.11090 | 7.02358 | 6.71008 |
$25800000
$26865373
$26861303
$26872878
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Auditing And Assurance Services
Authors: Alvin Arens, Randal Elder, Mark Beasley
14th Edition
1256560812, 9781256560814
