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Bushman, Inc., issues $500,000 of 9% bonds that pay interest semiannually and mature in 10 years. Compute the bond issue price assuming that the bonds

Bushman, Inc., issues $500,000 of 9% bonds that pay interest semiannually and mature in 10 years. Compute the bond issue price assuming that the bonds market rate is: a. 8% per year compounded semiannually. (Use a calculator or Excel for your calculations. Round your answers to the nearest dollar.)

Present value of principal repayment $Answer

Present value of interest payments $Answer

Selling price of bonds $Answer

b. 10% per year compounded semiannually. (Use a calculator or Excel for your calculations. Round your answers to the nearest dollar.)

Present value of principal repayment $Answer

Present value of interest payments $Answer

Selling price of bonds

Please show all work. i have seen other examples but cant figure out how the formula works. Thank you

$Answer

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