($700,000 bond of 9% that pay interest semiannually and mature in 10 years) when: The market rate is 8% 1. Compute the PV (Present values) of the Interest Payments (Annuity) at the end of each of 20 semiannual periods. 2. Compute the PV (Present values) of the Principal Repayment at the end of 20 semiannual periods. 3. Compute the bond issue price (sum of a and b). The market rate is 9% 1. Compute the PV (Present values) of the Interest Payments (Annuity) at the end of each of 20 semiannual periods. 2. Compute the PV (Present values) of the Principal Repayment at the end of 20 semiannual periods. 3. Compute the bond issue price (sum of a and b) The market rate is 10% 1. Compute the PV (Present values) of the Interest Payments (Annuity) at the end of each of 20 semiannual periods. 2. Compute the PV (Present values) of the Principal Repayment at the end of 20 semiannual periods. 3. Compute the bond issue price (sum of a and b)

Based on M7-19 ($700,000 bond of 9% that pay interest semiannually and mature in 10 years) when: - The market rate is 8% 1. Compute the PV (Present values) of the Interest Payments (Annuity) at the end of each of 20 semiannual periods. 2. Compute the PV (Present values) of the Principal Repayment at the end of 20 semiannual periods. 3. Compute the bond issue price (sum of a and b ). - The market rate is 9% 1. Compute the PV (Present values) of the Interest Payments (Annuity) at the end of each of 20 semiannual periods. 2. Compute the PV (Present values) of the Principal Repayment at the end of 20 semiannual periods. 3. Compute the bond issue price (sum of a and b) - The market rate is 10% 1. Compute the PV (Present values) of the Interest Payments (Annuity) at the end of each of 20 semiannual periods. 2. Compute the PV (Present values) of the Principal Repayment at the end of 20 semiannual periods. 3. Compute the bond issue price (sum of a and b )