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A company issued a $9,506. The best explanation/ is: the company paid the interest rate c demanded a highe the interest rate c accepted a lower i none of the above

A company issued a $9,506. The best explanation/ is: the company paid the interest rate c demanded a highe the interest rate c accepted a lower i none of the above

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company issued a 10%, 5-year, $10,000 bond to an investor for a cash price of $9,506. The best explanation/reason why the company did not receive exactly $10,000 cash is: the company paid a broker a commission on the issuance. the interest rate changed since the bonds were first offered, and the investor demanded a higher interest rate for her investment in the bond the interest rate changed since the bonds were first offered, and the investor accepted a lower interest rate for her investment in the bond none of the above are legitimate reasons
Transcribed Image Text:A company issued a 10%, 5-year, $10,000 bond to an investor for a cash price of $9,506. The best explanation/reason why the company did not receive exactly $10,000 cash is: the company paid a broker a commission on the issuance. the interest rate changed since the bonds were first offered, and the investor demanded a higher interest rate for her investment in the bond the interest rate changed since the bonds were first offered, and the investor accepted a lower interest rate for her investment in the bond none of the above are legitimate reasons
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