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Amiga Inc Issued $100,000,7% Semi-Annual,5-Year Bonds

Question 134

Multiple Choice

Amiga Inc issued $100,000,7% semi-annual,5-year bonds.The market rate at the time of issue was 7.5%.Using the effective interest method,the present value of the bond is


A) $97,945
B) $95,568
C) $133,266
D) $130,798
E) $129,108

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