ACCT 463 - Advanced Accounting Assignment Problem

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ACCT 463 - Advanced Accounting Assignment - Missouri Baptist University, USA

Question - A $700,000, 20-year, 8% bond issue was sold when the effective rate (market rate) was 10%. Interest was payable annually. Actuarial information for 20 periods follows:

8% 10%

Future value of 14.661 6.728

Present value of 10.21455 .14864

Future value of annuity of 145.762 57.275

Present value of annuity of 19.818 8.514

Required: Compute the amount of cash that was received when the bonds were issued.

Reference no: EM132438254

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