Marwick Corporation issues 12%, 5 year bonds with a par value of $1,030,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%. Wwhat isthe bond's issue (selling) price, assuming the following Present Value factors:Present Value of anAnnuity(seriesof payments)Present value of 11n=i=(single sum)12%3.60480.5674106%7.36010.55845.10%3.79080.6209105%7.72170.6139Multiple Choice$1,030,000$819,244$1,507,201McGrawHill< Prev8 of 10Next >O Type here to search9:11 PM96%3/21/2022PriScInsertదుటపర్F6FBF9F10FILF12 Multiple Choice$1,030,000$819,244$1,507,201$1,109,518$552,799

Solution: Bond issue price is calculated as present value of periodic interest and maturity value…

Marwick Corporation issues 12%, 5 year bonds with a par value of $1,030,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds the bond's issue (selling) price, assuming the following Present Value factors: Present Value of an Annuity (series of payments) Present value of 1 1n- (single sum) 5. 12% 3.6048 0.5674 10 6% 7.3601 0.5584 10% 3.7908 0.6209 10 5% 7.7217 0.6139 Multiple Choice

Marwick Corporation issues 12%, 5 year bonds with a par value of $1,030,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds the bond's issue (selling) price, assuming the following Present Value factors: Present Value of an Annuity (series of payments) Present value of 1 1n- (single sum) 5. 12% 3.6048 0.5674 10 6% 7.3601 0.5584 10% 3.7908 0.6209 10 5% 7.7217 0.6139 Multiple Choice

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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