On January 1, 20A, A-Ace Corp

question 152

Multiple Choice

On January 1, 20A, A-Ace Corp. issued $3,000,000 par value 12%, 10 year bonds which pay interest each December 31. If the market rate of interest was 14%, what should the issue price of the bonds be? (The present value factor for $1 in 10 periods at 12% is .3220 and at 14% is .2697. The present value of an annuity of $1 factor for 10 periods at 12% is 5.6502 and at 14% is 5.2161.)

• A) $2,686,896
• B) $3,339,084
• C) $2,843,172
• D) $3,000,000

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Definitions:

Presence

The state or fact of existing, occurring, or being present in a place or thing.

Knowledge Management

The process of creating, sharing, using, and managing the knowledge and information of an organization.

Disseminating

The act of spreading information, ideas, or products widely to ensure they reach a broad audience.

General Public

The broad population or society at large, often referred to in the context of public opinion or the target audience for mass media.