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14 On January 1, 2016, Broker Corp. issued $4,000,000 par value 12%, 10-year bonds which pay interest each December 31, lfthe market rate of interest was 14%, what was the issue price of the bonds?(The present value factor for $1 in 10 periods at 12% is 0.3220 and at 14% is 0.2697. The present va ue of an annuity of $1 factor for 10 Periods at 12% s 5.6502 and a 14% s 5,261 O$4,000000 $3,791,628, $4,452.018. $3.582.528.

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Answer #1
Amount PV factor Present value
Annual interest 480000 5.2161 2503728
Principal 4000000 0.2697 1078800
Issue price 3582528
Option 4 is correct
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