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Calculate the issue price of bonds Principal $350,000 Payable in 5 years Interest Payable 7% payments due at end of each year Market at issue
Calculate the issue price of bonds
Principal | $350,000 | |||
Payable in 5 years | ||||
Interest Payable | 7% payments due at end of each year | |||
Market at issue date | 8% | |||
1. Calculate Present Value of Principal: | ||||
2. Calculate Present Value of Interest: | ||||
3. Combine calculated principal and interest: |
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