The nesst company sells 5000000 of five-year 10 bonds at, Ask an Expert

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The Nesst Company sells $5,000,000 of five-year, 10% bonds at the start of the year. The bonds have an effective yield of 9%. Present value factors are below:
10% 9%

PV factor 1 year 0.90909 0.91743

PV factor 2 years 0.82645 0.84168

PV factor 3 years 0.75131 0.77218

PV factor 4 years 0.68301 0.70843

PV factor 5 years 0.62092 0.64993

The bond carrying value at the end of Year 1 is

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M994938

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