Kelpax Company issued seven-year, $100,000 bonds with a stated rate of interest of 8%, compounded semiannually. The

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Kelpax Company issued seven-year, $100,000 bonds with a stated rate of interest of 8%, compounded semiannually. The effective interest rate demanded by investors for bonds of this level of risk is 6%. Calculate the issuance price of the bond (e.g., the total present value).


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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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