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Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium Rosh Corporation is planning to issue bonds with a face
Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium Rosh Corporation is planning to issue bonds with a face value of $800,000 and a coupon rate of 8 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. Required: Compute the issue (sales) price on January 1 of this year for each of the following independent cases (show computations): a. Case A: Market interest rate (annual): 8 percent. b. Case B: Market interest rate (annual): 6 percent. c. Case C: Market interest rate (annual): 10 percent
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