Determine the issue price of the bonds


Question: Bishop Company issued 10% bonds on January 1, 2016 with a par value of $200,000. The bonds mature in 10 years and yield 12% interest. Interest is paid semiannually on June 30 and December 31. Determine the issue price of the bonds to the nearest dollar.

A. $224,900

B. $177,100

C. $177,400

D. $190,200

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Accounting Basics: Determine the issue price of the bonds
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