Question 13 5 pts Downing Company issues $5,000,000, 6%, 5-year bonds dated January 1, 2010 on January 1, 2010. 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? 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 2.5% 3.0% 5.0% 6.0% 88385 86261 78353 74726 78120 74409 61391 55839 4.64583 4.57971 4.32948 4.21236 8.75206 8.53020 7.72173 7.36009 $5,000,000 $5,216,494 $5,218,809 $5,217,308 Question 14 5 pts On January 1, Martinez Inc. issued $3,000,000, 11% bonds for $3,195,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Martinez uses the effective-interest method of amortizing bond premium. At the end of the first year, Martinez should report unamortized bond premium of: $185,130 $184,500 $173,550 $165,000