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: Calculate the issuance price if the market rate of interest is 12%.
A)$4,427,500.
B)$4,477,500.
C)$4,435,000.
D)$5,000,000.

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:  Calculate the issuance price if the market rate of interest is 12%.
A)$4,427,500. 
B)$4,477,500. 
C)$4,435,000. 
D)$5,000,000.

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:  Calculate the issuance price if the market rate of interest is 12%.
A)$4,427,500. 
B)$4,477,500. 
C)$4,435,000. 
D)$5,000,000.

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