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On January 1, a Company Issues 8%, 5 Year, $300,000

Question 222

Multiple Choice

On January 1, a company issues 8%, 5 year, $300,000 bonds that pay interest semiannually. On the issue date, the annual market rate of interest is 6%. The following information is taken from present value tables: On January 1, a company issues 8%, 5 year, $300,000 bonds that pay interest semiannually. On the issue date, the annual market rate of interest is 6%. The following information is taken from present value tables: What is the issue (selling) price of the bond? A) $420,000 B) $402,362 C) $300,010 D) $308,107 E) $325,592 What is the issue (selling) price of the bond?


A) $420,000
B) $402,362
C) $300,010
D) $308,107
E) $325,592

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