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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

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