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How much are the proceeds of the bond issue

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Question - Dave's Percussion Co. issued $50,000 of 8-year, zero-coupon debenture bonds on January 1 when the market yield was 6%. The bond agreement stated that compounding was semiannual. How much are the proceeds of the bond issue?

A) $50,000

B) $34,922

C) $25,080

D) $31,158

Reference no: EM132540041

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