Bond Issue Price A bond payable is dated January 1, 2010, and is issued on that date. The face value of the bond is $100,000, and the face rate of interest is 8%. The bond pays interest semiannually.

The bond will mature in fi ve years.

Required 1. What will be the issue price of the bond if the market rate of interest is 6% at the time of issuance?

2. What will be the issue price of the bond if the market rate of interest is 8% at the time of issuance?

3. What will be the issue price of the bond if the market rate of interest is 10% at the time of issuance?

AppendixLO1