A $900,000, ten-year, 4% bond issue was sold to yield 5% interest payable annually. Actuarial information for 10 periods is as follows:
|
|
4% |
5% |
|
Present value of 1 |
0.67556 |
0.61391 |
|
Present value of an annuity of 1 |
8.11090 |
7.72174 |
Refer to Exhibit 14-4. The discount or premium at the date of bond issuance would be
