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Business, 02.04.2020 04:00 gracemerci1

On January 1, Welling Company purchased 100 of the $1,000 face value, 8%, 10-year bonds of Mann, Inc. The bonds mature on January 1 in 10 years, and pay interest annually on January 1. Welling purchased the bonds to yield 10% interest. Information on present value factors is as follows:

Present value of $1 at 8% for 10 periods

0.4632

Present value of $1 at 10% for 10 periods

0.3855

Present value of an annuity of $1 at 8% for 10 periods

6.7101

Present value of an annuity of $1 at 10% for 10 periods

6.1446
How much did Welling pay for the bonds?

A. $95,477
B. $100,000
C. $92,230
D. $87,707

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On January 1, Welling Company purchased 100 of the $1,000 face value, 8%, 10-year bonds of Mann, Inc...
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