Business, 25.11.2020 14:00 misscheoneyo

On January 1, 2017, Ellison Co. issued eight-year bonds with a face value of $6,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Present value of 1 for 8 periods at 6% 0.627
Present value of 1 for 8 periods at 8% 0.540
Present value of 1 for 16 periods at 3% 0.623
Present value of 1 for 16 periods at 4% 0.534
Present value of annuity for 8 periods at 6% 6.210
Present value of annuity for 8 periods at 8% 5.747
Present value of annuity for 16 periods at 3% 12.561
Present value of annuity for 16 periods at 4% 11.652

The issue price of the bonds is:

a. $5,337,360.
b. $5,997,600.
c. $5,301,360.
d. $5,308,920.

Answers: 3

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On January 1, 2017, Ellison Co. issued eight-year bonds with a face value of $6,000,000 and a stated...

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