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How much did sandstone pay for the bonds

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Problem

On January 1, 2001, Sandstone Corporation purchased $200,000 face value, 9%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2011, and pay interest annually beginning January 1, 2002. The market rate of interest is 11%. How much did Sandstone pay for the bonds?
11% Interest Table Factors

Period

Present Value of $1

(Table 6-2)

Present Value of an Ordinary Annuity of $1 (Table 6-4)

6

.53464

4.23054

7

.48166

4.71220

8

.43393

5.14612

9

.39092

5.53705

10

.35218

5.88923

Reference no: EM131795733

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