Description
On January 1, 2009, McDougald Company issued $8,000,000 of 10-year bonds at a 11% stated interest rate to be paid annually. The following present value factors have been provided to answer the subsequent questions:
| Time Period | Interest | PV of $ | PV of an Annuity |
| 10 | 9% | 0.422 | 6.418 |
| 10 | 11% | 0.352 | 5.889 |
| 10 | 13% | 0.295 | 5.426 |
Reference: 11_04
Calculate the issuance price if the market rate of interest is 9%.
Choose one answer.
| a. $8,000,000 | ||
| b. $9,023,840 | ||
| c. $8,923,840 | ||
| d. $11,376,000 |
answer is 9023840. how????
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