Calculate the price of bonds,Effective interest 1 more to grade:

 

Bond No. 1:

A $200,000,  3 year,12% bond , interest payable 4 times per year.  Market rate is 12%

Bond No. 2

A $300,000, 5 year,  8% bond, interest payable once per year, Market rate is 10%.

Bond No. 3:

A $500,000, 10 year, 10% bond. Interest payable 2 X per year.  Market rate is 10%.

Required:
1. Calculate the price of the bond.

2. Construct the effective interest table for each of the bonds.