17. On January 1, Year 1, Liuxin Company authorizes and issues $300,000, 5% interest-bearing bonds. The bonds will mature on December 31of Year 5, and pay interest semiannually on June 30 and December 31. Compute the selling price of the bonds (rounded to the nearest dollar) under three different market rate assumptions. Market Rate A) $300,000 B) $300,000 C) $300,000 D) $300,000 6% $287,204 $277,920 4% $313,474 $324,333 $263,501 $380,843 $222,719 $351,181

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Chapter1: Financial Statements And Business Decisions
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17. On January 1, Year 1, Liuxin Company authorizes and issues $300,000, 5% interest-bearing bonds. The
bonds will mature on December 31of Year 5, and pay interest semiannually on June 30 and December 31.
Compute the selling price of the bonds (rounded to the nearest dollar) under three different market rate
assumptions.
Market Rate
A) $300,000
B) $300,000
C) $300,000
D) $300,000
6%
$287,204
$277,920
4%
$313,474
$324,333
$263,501
$380,843
$222,719
$351,181
Transcribed Image Text:17. On January 1, Year 1, Liuxin Company authorizes and issues $300,000, 5% interest-bearing bonds. The bonds will mature on December 31of Year 5, and pay interest semiannually on June 30 and December 31. Compute the selling price of the bonds (rounded to the nearest dollar) under three different market rate assumptions. Market Rate A) $300,000 B) $300,000 C) $300,000 D) $300,000 6% $287,204 $277,920 4% $313,474 $324,333 $263,501 $380,843 $222,719 $351,181
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