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Nickolas Industries Issued Bonds with a Face Value of $12,000,000

Question 4

Multiple Choice

Nickolas Industries issued bonds with a face value of $12,000,000 and a coupon rate of 5% paid semiannually for 6 years. The market rate of interest is 6%.
How much is the market value of the bond?


A) $12,500,000
B) $11,649,022
C) $11,653,456
D) $11,402,760

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