Cash transactions related to buying and selling assets that the firm plans to use for longer than one year are investing activities.
Indicate whether the statement is true or false
Question 2
On January 1, 2011, Bondz, Inc issued 1,000,000 of 5, 10-year bonds when the market rate of interest was 6. The bonds pay interest annually on December 31.
To calculate the amount of cash that Bondz received, you must use a discount rate of ________.
A) 20
B) 6
C) 5
D) The answer cannot be determined from the information given.
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