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On January 1, 2022, Jason Company issued $5.0 million of 10-year bonds at a 10% coupon interest rate to be paid annually. The following present value factors have been provided PV of a $1 Annuity 6.145 6.710 5.650 Time Period 10 10 10 Interest 10% PV of $1 0.386 8% 0.463 12% 0.322 What was the issuance price of the bonds if the market rate of interest was 8%? Multiple Choice $5.712.500 $5.387.500 $5,000,000 $5,670,000

On January 1, 2022, Jason Company issued $5.0 million of 10-year bonds at a 10% coupon interest rate to be paid annually. The following present value factors have been provided PV of a $1 Annuity 6.145 6.710 5.650 Time Period 10 10 10 Interest 10% PV of $1 0.386 8% 0.463 12% 0.322 What was the issuance price of the bonds if the market rate of interest was 8%? Multiple Choice $5.712.500 $5.387.500 $5,000,000 $5,670,000

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
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On January 1, 2022, Jason Company issued $5.0 million of 10-year bonds at a 10% coupon interest rate to be paid annually. The following present value factors have been provided Time Period 10 10 10 Interest 10% 8% 12% PV of $1 0.386 0.463 0.322 What was the issuance price of the bonds if the market rate of interest was 8%? Multiple Choice $5.712.500 $5.307.500 $5,000,000 PV of a $1 Annuity 6.145 6.710 5.650 $5,670,000
Transcribed Image Text:On January 1, 2022, Jason Company issued $5.0 million of 10-year bonds at a 10% coupon interest rate to be paid annually. The following present value factors have been provided Time Period 10 10 10 Interest 10% 8% 12% PV of $1 0.386 0.463 0.322 What was the issuance price of the bonds if the market rate of interest was 8%? Multiple Choice $5.712.500 $5.307.500 $5,000,000 PV of a $1 Annuity 6.145 6.710 5.650 $5,670,000
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