A corporation issues for cash $8,000,000 of 20-year, 8% bonds, interest payable semiannually. The amount received for the bonds will be a.the present value of 20 annual interest payments of $640,000, plus the present value of $8,000,000 to be repaid in 20 years. b.the present value of 40 semiannual interest payments of $320,000, plus the present value of $8,000,000 to be repaid in 20 years. c.the present value of $8,000,000 to be repaid in 20 years, less the present value of 40 semiannual interest payments of $320,000. d.the present value of 20 annual interest payments of $640,000.

A corporation issues for cash $8,000,000 of 20-year, 8% bonds, interest payable semiannually. The amount received for the bonds will be a.the present value of 20 annual interest payments of $640,000, plus the present value of $8,000,000 to be repaid in 20 years. b.the present value of 40 semiannual interest payments of $320,000, plus the present value of $8,000,000 to be repaid in 20 years. c.the present value of $8,000,000 to be repaid in 20 years, less the present value of 40 semiannual interest payments of $320,000. d.the present value of 20 annual interest payments of $640,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1RE

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