Question
The following information pertains to a company's issuance of bonds on July 1: Face amount $800,000 Term 10 years Contractual interest rate 6% Interest payment
The following information pertains to a company's issuance of bonds on July 1:
| Face amount | $800,000 |
| Term | 10 years |
| Contractual interest rate | 6% |
| Interest payment dates | Annually on July 1 |
| Market interest rate | 9% |
What should be the issue price for each $1,000 bond?
Group of answer choices
$807
$864
$1,000
$700
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th edition
470506954, 471345881, 978-0470506950, 9780471345886, 978-0470477144
