Final Exann connect ACCOUNTING instructions I help Question 2 (of 17) | Save & E

Question

Final Exann connect ACCOUNTING instructions I help Question 2 (of 17) | Save & Exit Submit GMAT Corporation is planning to Issue bonds with a face value of $259,500 and a coupon rate of 5 percent The bonds mature in 7 yeare and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Determine the issuance price of the bonds assuming an annual market rate of interest of 7.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Use the appropriate factorls) from the tables provided. Round your tinat änswer to whole

Explanation / Answer

Amount PV factor Present value Interest 6487.5 10.73962 69673 Principal 259500 0.59726 154989 Issue price 224662 Note: Final answer might vary + 1

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