# Bonds - Question PVB-0001 Bonds payable issued with...

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Question: PVB-0004 On January 1, 2007, Colt Company issued 10-year bonds with a face amount of \$1,000,000 and a stated interest rate of 8% payable annually on January 1. The bonds were priced to yield 10%. Present value factors are as follows: At 8% At 10% Present value of 1 for 10 periods 0.463 0.386 Present value of an ordinary annuity of 1 for 10 periods 6.710 6.145 The total issue price (rounded) of the bonds was Answers A : \$1,000,000 B : \$ 954,600 C : \$ 922,800 D : \$ 877,600 Answer Explanations This answer is incorrect. Refer to the correct answer explanation.

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