Sharmer Company Issues 5%, 5-Year Bonds with a Par ValueA)$1,213,255 B)$957,355 C)$1,000,000 D)$786,745 E)$1,250,000

The Answer of Sharmer Company Issues 5%, 5-Year Bonds with a Par ValueA)$1,213,255 B)$957,355 C)$1,000,000 D)$786,745 E)$1,250,000

Sharmer Company Issues 5%, 5-Year Bonds with a Par ValueA)$1,213,255 B)$957,355 C)$1,000,000 D)$786,745 E)$1,250,000

The Answer of Sharmer Company Issues 5%, 5-Year Bonds with a Par ValueA)$1,213,255 B)$957,355 C)$1,000,000 D)$786,745 E)$1,250,000

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Sharmer Company Issues 5%, 5-Year Bonds with a Par Value

Question 111

Multiple Choice

Sharmer Company issues 5%, 5-year bonds with a par value of $1,000,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%. What is the bond's issue (selling) price, assuming the following factors: $\begin{array}{rlll}&&\text { Present Value of an }\\n=&i=&\text { Annuity }&\text { Present value of } \mathbb{\$1}\\5 & 5 \% & 4.3295 & 0.7835 \\10 & 3 \% & 8.7521 & 0.7812 \\5 & 6 \% & 4.2124 & 0.7473 \\10 & 3 \% & 8.5307 & 0.7441\end{array}$

A) $1,213,255
B) $957,355
C) $1,000,000
D) $786,745
E) $1,250,000

Sharmer Company Issues 5%, 5-Year Bonds with a Par Value

Multiple Choice

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