Jack company is about to issue 1000000 of 10-year bonds


Question - Jack Company is about to issue $1,000,000 of 10-year bonds paying an 8% interest rate with interest payable semiannually. The discount rate for such securities is 10%. Below are available time value of money factors that Jack uses to calculate compound interest. To the closest dollar, how much can Jack expect to receive for the sale of these bonds?

A) $875,379.

B) $1,756,879.

C) $731,592.

D) $1,000,000.

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Accounting Basics: Jack company is about to issue 1000000 of 10-year bonds
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