On December 31, 2009, Callahan Auto issued $1,500,000 of 8 percent, 10-year bonds. Interest is payable semiannually

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On December 31, 2009, Callahan Auto issued $1,500,000 of 8 percent, 10-year bonds.

Interest is payable semiannually on June 30 and December 31.

Required:

What is the issue price if the bonds are sold to yield 6 percent (round to nearest dollar)?

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Cornerstones of Financial and Managerial Accounting

ISBN: 978-0324787351

1st Edition

Authors: Rich Jones, Mowen, Hansen, Heitger

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Question Posted: Jul 23, 2012 03:24 AM

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On December 31, 2009, Callahan Auto issued $1,500,000 of 8 percent, 10-year bonds. Interest is payable semiannually

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PV of interest payments 1500000 008 612 P...View the full answer

Cornerstones of Financial and Managerial Accounting

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