A $175,000, 5%, 3 year bond issue sold at 104 will cost: (Round your final answer to the nearest dollar.) $191,100 $183,750 $175,000 $182,000
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The bond issue is sold at 104, which means it is sold at 104% of its face value. To find the face value of the bond issue, we divide the total cost by 104%: Face value = Total cost / 104% = $175,000 / 1.04 = $168,269.23 Show more…
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