On January 1, 2020, University Theatres issued $500,000 face value of bonds. The stated rate is 8%,

Question:

On January 1, 2020, University Theatres issued $500,000 face value of bonds. The stated rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in 15 years.
Required:
Calculate the price at which the bonds are issued assuming the market rate of interest is (a) 6% and (b) 10%.

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