(Answered) Question - on january 1 2010 haley co issued ten-year bonds

Accounting

Question - On January 1, 2010, Haley Co. issued ten-year bonds with a face amount of $2,000,000 and a stated interest rate of 8% payable annually on January 1. The bonds were priced to yield 10%. Present value factors are as follows:

At 8% At 10%

Present value of 1 for 10 periods 0.463 0.386

Present value of an ordinary annuity of 1 for 10 periods 6.710 6.145

The total issue price of the bonds was

$2,000,000.

$1,960,000.

$1,840,000.

$1,755,200.

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