St. Clair Drums issued $100,000 of 8-year, zero-coupon debenture bonds on January 1 when the market yield was 6%. The bond agreement stated that compounding was semiannual. How much are the proceeds of the bond issue using Excel or a financial calculator? $100,000 $ 69,843 $ 50,160 $ 62,317

St. Clair Drums issued $100,000 of 8-year, zero-coupon debenture bonds on January 1 when the market yield was 6%. The bond agreement stated that compounding was semiannual. How much are the proceeds of the bond issue using Excel or a financial calculator? $100,000 $ 69,843 $ 50,160 $ 62,317

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2EA: Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the...

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Question

St. Clair Drums issued $100,000 of 8-year, zero-coupon debenture bonds on January 1 when the market yield was 6%. The bond agreement stated that compounding was semiannual.

How much are the proceeds of the bond issue using Excel or a financial calculator?

$100,000
$ 69,843
$ 50,160
$ 62,317

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