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Multiple Choice O O O $236,032. $223,968. $230,000.

Multiple Choice O O O $236,032. $223,968. $230,000.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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am. 106.

On January 1, a company issues bonds dated January 1 with a par value of $230,000. The bonds mature in 3 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8%. Using the present value factors below, the issue (selling) price of the bonds is: number of periods interest rate (n)= 3636 6 Multiple Choice (i)= 7.0% 3.5% 8.0% 4.0% $236,032. $223,968. $230,000. $42,199. $181,769. Present Value of an Annuity (series of payments) 2.6243 5.3286 2.5771 5.2421 Present value of 1 (single sum) 0.8163. 0.8135 0.7938 0.7903
Transcribed Image Text:On January 1, a company issues bonds dated January 1 with a par value of $230,000. The bonds mature in 3 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8%. Using the present value factors below, the issue (selling) price of the bonds is: number of periods interest rate (n)= 3636 6 Multiple Choice (i)= 7.0% 3.5% 8.0% 4.0% $236,032. $223,968. $230,000. $42,199. $181,769. Present Value of an Annuity (series of payments) 2.6243 5.3286 2.5771 5.2421 Present value of 1 (single sum) 0.8163. 0.8135 0.7938 0.7903
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