On January 1,2011,Alpha Company issued $1,000,000 of 5%,20-year bonds to buy a new computerized accounting system.The market rate of interest was 6%.The bonds pay interest annually on December 31.How much cash will bondholders receive when the bonds mature?
A) $1,000,000
B) $1,124,622.60
C) $885,296
D) $950,386
Correct Answer:
Verified
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