Question
Simmons Corporation issues $500,000 in term bonds with a stated interest rate of 4%. The effective interest rate is 6%. The bonds have a term
Simmons Corporation issues $500,000 in term bonds with a stated interest rate of 4%. The effective interest rate is 6%. The bonds have a term of 4 years. Which of the following is the correct issuance price for the bonds?
a.$465,347
b.$459,998
c.$499,998
d.$475,890
e.$495,890
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Auditing & Assurance Services
Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau
8th Edition
978-1260703733, 1260703738
