16. On January 1, 2005, Dean Company issued ten-year bonds with a face value of $1,000,000 and a stated interest rate or 8% per year payable semiannually July 1
and January 1. The bonds were sold to yield 10%. Present value interest factors are as follows: Present value of 1 for 10 periods at 10% .386 Present value of 1
for 20 periods at 5% .377 Present value of an annuity of 1 for 10 periods at 5% 6.145 Present value of an annuity of 1 for 20 periods at 5% 12.462 The total issue
price of the bond is: a. $875,480. b. $877,600. c. $980,000. d. $1,000,000.
and January 1. The bonds were sold to yield 10%. Present value interest factors are as follows: Present value of 1 for 10 periods at 10% .386 Present value of 1
for 20 periods at 5% .377 Present value of an annuity of 1 for 10 periods at 5% 6.145 Present value of an annuity of 1 for 20 periods at 5% 12.462 The total issue
price of the bond is: a. $875,480. b. $877,600. c. $980,000. d. $1,000,000.
