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Find the selling price of the bond

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Reference no: EM132497107

A company issued $250,000, 8%, 5-year bonds on January 1, 2018. The market rate of interest was 5%. Interest on these bonds is payable annually on December 31.

Question (a) Was this bond issued at a premium or a discount?

a: Premium

b: Discount

Question (b) Determine the selling price of the bond.

Reference no: EM132497107

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