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When the market rate of interest was 12%, Halprin Corporation issued s768,000, 11%, five year bonds that pay interest annually. The selling price of this bond issue was needed. Use the following table,

When the market rate of interest was 12%, Halprin Corporation issued s768,000, 11%, five year bonds that pay interest annually. The selling price of this bond issue was needed. Use the following table,

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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Whats the selling price of the bond issue?
When the market rate of interest was 12%, Halprin Corporation issued $768,000, 11%, five year bonds that pay interest annually. The selling price of this bond issue was . Use the following table, if needed. Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 0.90703 0.89000 0.87344 0.82645 0.79719 0.86384 0.83962 0.81630 0.75132 0.711/8 4 0.82270 0.79209 0.76290 0.68301 0.63552 0.78353 0.74726 0.71299 0.62092 0.56743 6. 0.74622 0.70496 0.66634 0.56447 0.50663 7 0.71068 0.66506 0.62275 0.51316 0.45235 8 0.67684 0.62741 0.58201 0.46651 0.40388 0.64461 0.59190 0.54393 0.42410 0.36061 10 0.61391 0.55840 0.50835 0.38554 0,32197 Present Value of an Annuity of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 1.85941 1.83339 1.80802 1.73554 1.69005 3 2.72325 2.67301 2.62432 2.48685 2.40183 4 3.54595 3.46511 3.38721 3.16987 3.03735 4.32948 4.21236 4.10020 3.79079 3.60478 6. 5.07569 4.91732 4.76654 4.35526 4.11141
Transcribed Image Text:When the market rate of interest was 12%, Halprin Corporation issued $768,000, 11%, five year bonds that pay interest annually. The selling price of this bond issue was . Use the following table, if needed. Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 0.90703 0.89000 0.87344 0.82645 0.79719 0.86384 0.83962 0.81630 0.75132 0.711/8 4 0.82270 0.79209 0.76290 0.68301 0.63552 0.78353 0.74726 0.71299 0.62092 0.56743 6. 0.74622 0.70496 0.66634 0.56447 0.50663 7 0.71068 0.66506 0.62275 0.51316 0.45235 8 0.67684 0.62741 0.58201 0.46651 0.40388 0.64461 0.59190 0.54393 0.42410 0.36061 10 0.61391 0.55840 0.50835 0.38554 0,32197 Present Value of an Annuity of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 1.85941 1.83339 1.80802 1.73554 1.69005 3 2.72325 2.67301 2.62432 2.48685 2.40183 4 3.54595 3.46511 3.38721 3.16987 3.03735 4.32948 4.21236 4.10020 3.79079 3.60478 6. 5.07569 4.91732 4.76654 4.35526 4.11141
0.74622 0.70496 0.66634 0.56447 0.50663 0.71068 0.66506 0.62275 0.51316 0.45235 8 0.67684 0.62741 0.58201 0.46651 0.40388 9. 0.64461 0.59190 0.54393 0.42410 0.36061 10 0.61391 0.55840 0.50835 0.38554 0.32197 Present Value of an Annuity of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 1.85941 1.83339 1.80802 1.73554 1.69005 3 2.72325 2.67301 2.62432 2.48685 2.40183 4 3.54595 3.46511 3.38721 3.16987 3.03735 4.32948 4.21236 4.10020 3.79079 3.60478 5.07569 4.91732 4.76654 4.35526 4.11141 7 5.78637 5.58238 5.38929 4.86842 4.56376 8. 6.46321 6.20979 5.97130 5.33493 4.96764 7.10782 6.80169 6.51523 5.75902 5.32825 10 7.72173 7.36009 7.02358 6.14457 5.65022 Oa. $740,318 Ob. $744,128 Oc. $1.086,390 Od. $1,179,914
Transcribed Image Text:0.74622 0.70496 0.66634 0.56447 0.50663 0.71068 0.66506 0.62275 0.51316 0.45235 8 0.67684 0.62741 0.58201 0.46651 0.40388 9. 0.64461 0.59190 0.54393 0.42410 0.36061 10 0.61391 0.55840 0.50835 0.38554 0.32197 Present Value of an Annuity of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 1.85941 1.83339 1.80802 1.73554 1.69005 3 2.72325 2.67301 2.62432 2.48685 2.40183 4 3.54595 3.46511 3.38721 3.16987 3.03735 4.32948 4.21236 4.10020 3.79079 3.60478 5.07569 4.91732 4.76654 4.35526 4.11141 7 5.78637 5.58238 5.38929 4.86842 4.56376 8. 6.46321 6.20979 5.97130 5.33493 4.96764 7.10782 6.80169 6.51523 5.75902 5.32825 10 7.72173 7.36009 7.02358 6.14457 5.65022 Oa. $740,318 Ob. $744,128 Oc. $1.086,390 Od. $1,179,914
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