Question
Computing Bond Issue Price Bushman, Inc., issues $500,000 of 9% bonds that pay interest semiannually and mature in 10 years. Compute the bond issue price
Computing Bond Issue Price Bushman, Inc., issues $500,000 of 9% bonds that pay interest semiannually and mature in 10 years. Compute the bond issue price assuming that the bonds market rate is: a. 8% per year compounded semiannually. Round your answers to the nearest dollar. Present value of principal repayment $ Answer Present value of interest payments $ Answer Selling price of bonds $ Answer b. 10% per year compounded semiannually. Round your answers to the nearest dollar. Present value of principal repayment $ Answer Present value of interest payments $ Answer Selling price of bonds $ Answer
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