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6 . LF Corporation issued $400,000 (Face value) of 15 year bonds on January 1 with a stated interest rate per year of 8% .
6 . LF Corporation issued $400,000 (Face value) of 15 year bonds on January 1 with a stated interest rate per year of 8%. The bond pays cash interest biannually on June 30 and December 31. If themarket interest rate is 6% at the time bonds are issued, what will be the issue price of bonds? Assume there is no issue cost incurred for these bonds. Choose the nearest amont.
a. $478,406 b. $399,992 c. $400,000 d. $632,205
6 . LF Corporation issued $400,000 (Face value) of 15 year bonds on January 1 with a stated interest rate per year of 8%. The bond pays cash interest biannually on June 30 and December 31. If themarket interest rate is 6% at the time bonds are issued, what will be the issue price of bonds? Assume there is no issue cost incurred for these bonds. Choose the nearest amont.
a. $478,406
b. $399,992
c. $400,000
d. $632,205
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