Use the Following Information for Questions

question 49

Multiple Choice

Use the following information for questions.issued eight-year bonds with a face value of $1,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31.The bonds were sold to yield 8%.Table values are:
-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?

• A)$5,000,000
• B)$5,216,494
• C)$5,218,809
• D)$5,217,308

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Definitions:

Iron Formations

Geological formations composed of layered sediments and minerals, predominantly iron-rich, that were deposited in ancient oceanic and lake environments.

Sedimentary Sequences

Layers of sedimentary rocks that record the geological history of an area, often showing a progression of depositional environments.

Groundwater

Water that is found in the pores and fractures in rock and soil beneath the Earth's surface, which can supply wells and springs.

Porphyry Copper Deposits

Large, low-grade mineral deposits containing dispersed copper-bearing minerals in a porphyritic host rock, often associated with intrusive igneous rocks.