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Heller Company Issues $950,000 of 10% Bonds That Pay Interest

Question 32

Multiple Choice

Heller Company issues $950,000 of 10% bonds that pay interest semiannually and mature in 10 years.
What is the bonds' issue price assuming that the bonds' market interest rate is 14% per year?


A) $ 748,714
B) $ 950,000
C) $ 751,788
D) $1,273,515
E) None of the above

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