7. A 25-year, $10,000 strip bond was issued at a market rate of 9.4% compounded semi-annually. What was the issue price? a) $216.11 b) $962.46 c) $1,006.16 d) $1,058.20 e) $6,117.44

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 6MC: On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest...
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7. A 25-year, $10,000 strip bond was issued at a market rate of 9.4% compounded
semi-annually. What was the issue price?
a) $216.11
b) $962.46
c) $1,006.16
d) $1,058.20
e) $6,117.44
Transcribed Image Text:7. A 25-year, $10,000 strip bond was issued at a market rate of 9.4% compounded semi-annually. What was the issue price? a) $216.11 b) $962.46 c) $1,006.16 d) $1,058.20 e) $6,117.44
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