(Answered) Question - james corporation is planning to issue 500000

Accounting

Question - James Corporation is planning to issue $500,000 worth of 6 percent bonds that mature in 10 years. Interest payments are made each June 30 and December 31. All of the bonds will be sold on January 1, 2014.

Compute the issue (sale) price on January 1, 2014, for each of the following independent cases:

Case A: Market (yield) rate, 4 percent.

Case B: Market (yield) rate, 8.5 percent.

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