Amiga Inc Issued $100,000,7% Semi-Annual,5-Year Bonds

question 134

Multiple Choice

Amiga Inc issued $100,000,7% semi-annual,5-year bonds.The market rate at the time of issue was 7.5%.Using the effective interest method,the present value of the bond is

• A)$97,945
• B)$95,568
• C)$133,266
• D)$130,798
• E)$129,108

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