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Compute the selling price of 8%,10-year bonds with a par value of $220,000 and semiannual interest payments. The annual market rate for these bonds is
Compute the selling price of 8%,10-year bonds with a par value of $220,000 and semiannual interest payments. The annual market rate for these bonds is 10%. Use present value Table B.1 and Table B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations.) Table B.1* Present Value of 1 p=1/(1+i)n of n=12 and i=5% (12 semianmul periods and a semianmual rate of 5%, the factor is 0.5568. You would need to invest $2,784 today (\$5, 0000.5568). Table B. 3 Present Value of an Annuity of 1 p=[11/(1+i)n]/i =10,i=9%), the PV factor is 6.4177.$2,000 per year for 10 years is the equivalent of $12,835 today ($2,0006.4177). ng an annual interest rate of 9% ? For (n
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