medium · Financial Accounting liabilities-bonds-payable
A 5-year, $100,000 zero-coupon bond is issued to yield an annual market rate of 10%. If interest is assumed to compound semiannually, what are the proceeds at issuance? Use PV factor for n=10, i=5%: 0.6139.
- $61,390
- $50,000
- $62,090
- $100,000
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