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Blossom Corporation issues $ 5 5 0 , 0 0 0 of 1 2 % bonds that are due in 8 years and pay interest

Blossom Corporation issues $550,000 of 12% bonds that are due in 8 years and pay interest semi-annually. At the time of issue, the
market rate for such bonds is 10%.
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.
Calculate the bonds' issue price by (1) using the factor tables provided (2) a financial calculator, or (3) Excel function PV.(Hint: Refer to
Chapter 3 for tips on calculating.)(Round present value factor calculations to 5 decimal places, e.g.1.25124 and final answer
to 0 decimal places e.g.58,971.)
Issue price of bond
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