Williams Company issued $600,000 of 10%, 5-year bonds. Interest is paid semiannually, and the straight-line method is used for amortization. Assume that the market rate for similar investments is 12% and the bonds are issued on an interest date. What amount was received for the bonds? (round to nearest dollar) PRESENT VALUE OF $1 If n=5 and interest = 10%, then use the factor 0.62092 %3D But, if n=10 and interest = 6%, then use the factor 0.55839 %3! PRESENT VALUE OF ANNUITY $1 If n=5 and interest = 10%, then use the factor 3.79079 %3D But, if n=10 and interest = 6%, then use the factor 7.36009 %3D O $486,276 O $600,000 O $630,000 O $555,837

Williams Company issued $600,000 of 10%, 5-year bonds. Interest is paid semiannually, and the straight-line method is used for amortization. Assume that the market rate for similar investments is 12% and the bonds are issued on an interest date. What amount was received for the bonds? (round to nearest dollar) PRESENT VALUE OF $1 If n=5 and interest = 10%, then use the factor 0.62092 %3D But, if n=10 and interest = 6%, then use the factor 0.55839 %3! PRESENT VALUE OF ANNUITY $1 If n=5 and interest = 10%, then use the factor 3.79079 %3D But, if n=10 and interest = 6%, then use the factor 7.36009 %3D O $486,276 O $600,000 O $630,000 O $555,837

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 15MCQ

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