On January 1,a Company Issues Bonds Dated January 1 with a Par

question 166

Multiple Choice

On January 1,a company issues bonds dated January 1 with a par value of $200,000.The bonds mature in 3 years.The contract rate is 4%,and interest is paid semiannually on June 30 and December 31.The market rate is 5%.Using the present value factors below,the issue (selling) price of the bonds is:

• A)$205,607.
• B)$194,492.
• C)$200,000.
• D)$22,032.
• E)$172,460.

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Definitions:

TSH

Thyroid-Stimulating Hormone, a pituitary gland secreted hormone that regulates the production of hormones by the thyroid gland.

Thyroid Hormones

Hormones produced by the thyroid gland, such as thyroxine (T4) and triiodothyronine (T3), that regulate metabolism, energy generation, and growth.

Follicular Cells

Epithelial cells found in the thyroid gland which synthesize and secrete thyroid hormones, or cells surrounding the ovum in an ovarian follicle.

Thyroid

A gland in the neck that secretes hormones regulating growth and development through the rate of metabolism.