Computing the issue price of bonds. Skinner Corporation issues $10,000,000-par value, 8 percent semiannual coupon bonds due

Question:

Computing the issue price of bonds. Skinner Corporation issues $10,000,000-par value, 8 percent semiannual coupon bonds due in 10 years. Compute the issue price of these bonds assuming the following market-required interest rates on the date of issue:

a. 6 percent compounded semiannually

b. 8 percent compounded semiannually

c. 10 percent compounded semiannually

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