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Big Picture Corporation issues 12%, 5-year bonds with a par value of $1,130,000 and semiannual interest payments. On the issue date, the annual market
Big Picture Corporation issues 12%, 5-year bonds with a par value of $1,130,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%. What is the bond's issue (selling) price, assuming the following Present Value factors: number of periods (n)= interest rate (i)= Present Value of an Annuity (series of payments) Present value of 1 (single sum) 5 12% 3.6048 10 6% 7.3601 0.5674 0.5584 5 10% 3.7908 10 5% 7.7217 0.6209 0.6139
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