Acc421 Intermediate Accounting: W5-2 Alan Jackson, Inc. manufactures music equipment

Acc421 Intermediate Accounting

W5-2 Computation of Bond Liability (Chapter 6)
Alan Jackson, Inc. manufactures music equipment. The company has decided to construct a new plant. The board of directors has decided to raise funds for the new plant by issuing $2,000,000 of 11% term corporate bonds on March 1, 2009, due on March 1, 2024, with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instruments is 10%.

Using the appropriate interest table or Excel formula, determine the selling price of the bonds.
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