Zorzi Corporation issues $500.000 of 9% bonds. due in 10 years, with interest payable semiannually At the time of issue, the marketrate for such bonds is 10%Compute the issue price of the bondsO $500,000O $469 000O $468,845O $468 000

Company has different methods to finance its business, Projects. Issuing of the Bonds also is the…

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Business

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Compute the issue price of the bonds 00.000

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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Question

Zorzi Corporation issues $500.000 of 9% bonds. due in 10 years, with interest payable semiannually At the time of issue, the market
rate for such bonds is 10%
Compute the issue price of the bonds
O $500,000
O $469 000
O $468,845
O $468 000

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