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Business, 18.11.2020 06:10 tykeria58

On January 1, a company issues bonds dated January 1 with a par value of $350,000. The bonds mature in 3 years. The contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The market rate is 9%. Using the present value factors below, the issue (selling) price of the bonds is: n= i= Present Value of an Annuity (series of payments) Present value of 1 (single sum) 3 8.0 % 2.5771 0.7938 6 4.0 % 5.2421 0.7903 3 9.0 % 2.5313 0.7722 6 4.5 % 5.1579 0.7679

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On January 1, a company issues bonds dated January 1 with a par value of $350,000. The bonds mature...
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