Question
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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