Computation of Market Values of Bond Issues

Compute the market value of each of the following bond issues.

Click here to access the PV table and the PV of an ordinary annuity table to use with this problem. Round your final answers to the nearest dollar.

1. 10% bonds of $1,000,000 sold on bond issue date; 10-year life; interest payable semiannually; effective rate, 12%. $
2. 9% bonds of $200,000 sold on bond issue date; 5-year life; interest payable semiannually; effective rate, 8%. $
3. 8% bonds of $150,000 sold 30 months after bond issue date; 15-year life; interest payable semiannually; effective rate, 10%. $