Marin Inc. issues $2, 084, 300 of 10% bonds due in 13 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 11%. What amount will Marin receive when it issues the bonds? (Round factor values to 5 decimal places, e. g. 1.25124 and final answers to 0 decimal places, e. g. 458, 581.) Amount received by Marin when bonds were issued $

$1,943,618.62

Explanation:

the current market price of the bond = present value of the face value + present value of coupon payments

present value of face value = $2,084,300 / (1 + 11%)¹³ = $536,736.96

present value of coupon payments = $208,430 x 6.7499 (annuity factor, 11%, 13 years) = $1,406.881.66

market value of the bonds = $1,943,618.62

the journal entry to record the issuance of the bonds:

Dr Cash 1,943,618.62

Dr Discount on bonds payable 140,681.38

    Cr Bonds payable 2,084,300

answer; i believe that the correct answer is client agreement;

answer; /// the correct answer is (10) days; /// good luck