Question: Downing Company issues $5,000,000, 6%, 5-year bonds dated January 1, 2015 on January 1, 2015. The bonds pay interest semiannually on June 30 and December

Downing Company issues $5,000,000, 6%, 5-year bonds dated January 1, 2015

Downing Company issues $5,000,000, 6%, 5-year bonds dated January 1, 2015 on January 1, 2015. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue? 2.5% 3.0% 5.0% 6.0% 88385 86261 78353 .74726 .78120 .74409 61391 558391 Present value of a single sum for 5 periods Present value of a single sum for 10 periods Present value of an annuity for 5 periods Present value of an annuity for 10 periods 4.64583 4.57971432948 4.21236 8.75206 8.53020 7.72173 7.36009 O a $5,217,308 O. $5,000,000 Oc. $5,216,494 Od $5,218,809

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