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On January 1, 2016, Jason Company Issued $5 Million of 10-Year

Question 101

Multiple Choice

On January 1, 2016, Jason Company issued $5 million of 10-year bonds at a 10% coupon interest rate to be paid annually. The following present value factors have been provided: On January 1, 2016, Jason Company issued $5 million of 10-year bonds at a 10% coupon interest rate to be paid annually. The following present value factors have been provided: What was the issuance price of the bonds if the market rate of interest was 8%? A) $5,000,000. B) $5,670,000. C) $5,387,500. D) $5,712,500. What was the issuance price of the bonds if the market rate of interest was 8%?


A) $5,000,000.
B) $5,670,000.
C) $5,387,500.
D) $5,712,500.

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