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Calculate the issue price of bonds PRINCIPAL $300,000 TERM Payable at 5 years INTEREST PAYABLE 7% payable due at end of each year MARKET AT
Calculate the issue price of bonds
| PRINCIPAL | $300,000 |
| TERM | Payable at 5 years |
| INTEREST PAYABLE | 7% payable due at end of each year |
| MARKET AT ISSUE DATE | 8% |
Steps
1. Calculate Present Value of Principal:
2. Calculate Present Value of Interest:
3. Combine calculated principal and interest:
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Construction accounting and financial management
Authors: Steven j. Peterson
2nd Edition
135017114, 978-0135017111
