On December 31, 20X1, Hartley Company issued a 3-year $10,000 bond that promises an interest rate of

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On December 31, 20X1, Hartley Company issued a 3-year $10,000 bond that promises an interest rate of 12%, payable 6% semiannually. Compute the discounted present value of the principal and the interest as of December 31, 20X1, if the market rate of interest for such securities is 12%, 14%, and 10%, respectively. Show your computations, including a sketch of cash flows. Round to the nearest dollar.


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Introduction to Financial Accounting

ISBN: 978-0133251036

11th edition

Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick

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