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PV$1 PVA 10 6% 0.558395 7.360087 10 7% 0.508349 7.023582 20 3% 0.553676 14.87747 20 3.5% 0.502566 14.2124

PV$1 PVA 10 6% 0.558395 7.360087 10 7% 0.508349 7.023582 20 3% 0.553676 14.87747 20 3.5% 0.502566 14.2124

FINANCIAL ACCOUNTING
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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PV$1 PVA 10 6% 0.558395 7.360087 10 7% 0.508349 7.023582 20 3% 0.553676 14.87747 20 3.5% 0.502566 14.2124 The company issues a bond due in 10 years with a stated interest rate of 7% and a face value of $200,000. Interest payments are made semi-annually. The market rate for this type of bond is 6%. What is the issue price of the bond (rounded to nearest dollar)?
Transcribed Image Text:PV$1 PVA 10 6% 0.558395 7.360087 10 7% 0.508349 7.023582 20 3% 0.553676 14.87747 20 3.5% 0.502566 14.2124 The company issues a bond due in 10 years with a stated interest rate of 7% and a face value of $200,000. Interest payments are made semi-annually. The market rate for this type of bond is 6%. What is the issue price of the bond (rounded to nearest dollar)?
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