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What the correct issuance price for the bonds

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Question - Simmons corporation issues $500,000 in term bonds with a stated interest rate of 4%. The effective interest rate is also 4%. The bonds have a term of 4 years. What the correct issuance price for the bonds?

A) $489,389

B) $500,000

C) $490,000

D) $498,330

E) $512,987

Reference no: EM133163142

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