Question: Downing Company issues $7,000,000, 5%, 5-year bonds dated January 1, 2019 on January 1, 2017. The bonds pay interest semiannually on June 30 and December

Downing Company issues $7,000,000, 5%, 5-year bonds dated January 1, 2019

Downing Company issues $7,000,000, 5%, 5-year bonds dated January 1, 2019 on January 1, 2017. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 6%. What are the proceeds from the bond issue? 5,0% | 6,0% 2.5% 3.0% Present value of a single sum for 5 periods 88385 86261 78353 74726 Present value of a single sum for 10 78120 74409 61391 55839 periods Present value of an annuity for 5 periods4.64583 4.57971 4.32948 4.21236 Present value of an annuity for 10 periods8.75206 8.53020 7.72173 7.36009 O $7,000,000 $6,701.415 O S7,306,333 $6,746,138

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