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Compute the total price paid by abc corporation for the

ABC Corporation purchased 5, $1,000, 6% bonds of Langley Corporation when the market rate of interest was 8%. Interest is paid semiannually on the bonds, and the bonds mature in 5 years.

Instructions:

Compute the total price paid by ABC Corporation for the bonds showing your calculation for the present value of the principal and the present value of the interest payments.

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Accounting Basics: Compute the total price paid by abc corporation for the

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Accounting Basics: Compute the total price paid by abc corporation for the

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