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Blossom College is about to issue $1.06 million of 10-year bonds that pay a 6 annual interest rate, with interest payable semi-annually. Calculate the issue
Blossom College is about to issue $1.06 million of 10-year bonds that pay a 6 annual interest rate, with interest payable semi-annually. Calculate the issue price of these bonds if the market interest rate is (a) 5%. (b) 6% and (c) 7%. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer too decimal places, eg, 5.275) Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 (a) Market interest rate 5% $ (b) Market interest rate 6% $ (c) Market interest rate 7% $
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