Sharmer Company issues 5%,5-year bonds with a par value of $1,000,000 and semiannual interest payments.On the issue date,the annual market rate for these bonds is 6%.What is the bond's issue (selling)price,assuming the following factors:
A)$957,355
B)$1,000,000
C)$1,250,000
D)$786,745
E)$1,213,255

Question

Sharmer Company issues 5%,5-year bonds with a par value of $1,000,000 and semiannual interest payments.On the issue date,the annual market rate for these bonds is 6%.What is the bond's issue (selling)price,assuming the following factors: 
A)$957,355 
B)$1,000,000 
C)$1,250,000 
D)$786,745 
E)$1,213,255

Quizplus · Accepted Answer

The Answer of Sharmer Company issues 5%,5-year bonds with a par value of $1,000,000 and semiannual interest payments.On the issue date,the annual market rate for these bonds is 6%.What is the bond's issue (selling)price,assuming the following factors: 
A)$957,355 
B)$1,000,000 
C)$1,250,000 
D)$786,745 
E)$1,213,255

Sharmer Company Issues 5%,5-Year Bonds with a Par Value of $1,000,000