Marwick Corporation issues 8%, 5 year bonds with a par value of $1,200,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%. What is the bond's issue (selling) price, assuming the following Present Value factors: Present Value of an Annuity (series Present value of 1 In= i= of payments) (single sum) 0.6806 3.9927 10 48 8.1109 0.6756 5 6% 4.2124 0.7473 10 38 8.5302 0.7441 Multiple Choice $1,200,000 $989,244 $1,609,450 < Prev 8 of 10 E Next > MacBook Air

Marwick Corporation issues 8%, 5 year bonds with a par value of $1,200,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%. What is the bond's issue (selling) price, assuming the following Present Value factors: Present Value of an Annuity (series Present value of 1 In= i= of payments) (single sum) 0.6806 3.9927 10 48 8.1109 0.6756 5 6% 4.2124 0.7473 10 38 8.5302 0.7441 Multiple Choice $1,200,000 $989,244 $1,609,450 < Prev 8 of 10 E Next > MacBook Air

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual...

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On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
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