A $500,000, ten year, 7% bond issue was sold to yield 6% interest payable annually. Actuarial information

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A $500,000, ten year, 7% bond issue was sold to yield 6% interest payable annually. Actuarial information for 10 periods is as follows:

present value $1 @ 7% = 0.50835 @ 6% = 0.55839

present value of an annuity of $1 @ 7% = 7.02359 @ 6% = 7.36009

The discount or premium at the date of bond issuance would be?

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Intermediate Accounting Volume 2

ISBN: 9781260881240

8th Edition

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel

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Posted Date: Mar 13, 2024 01:19 AM

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A $500,000, ten year, 7% bond issue was sold to yield 6% interest payable annually. Actuarial information

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Intermediate Accounting Volume 2

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