A $700,000, ten-year, 9% bond issue was sold to yield 10% interest payable annually. Actuarial information for 10 periods is as follows:
|
|
9% |
10% |
|
Present value of 1 |
0.42241 |
0.38554 |
|
Present value of an annuity of 1 |
6.41766 |
6.14456 |
Refer to Exhibit 14-4. The discount or premium at the date of bond issuance would be
