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Desmond Corp. purchased five $1,000 5% bonds of Circuit Corporation when the market rate of interest was 8%. Interest is paid semiannually, and the bonds
Desmond Corp. purchased five $1,000 5% bonds of Circuit Corporation when the market rate of interest was 8%. Interest is paid semiannually, and the bonds will mature in ten years. Using the PV function in Excel, compute the price Desmond paid (the present value) for the bond investment. (Assume that all payments of interest and principal occur at the end of the period. Round your answer to the nearest cent.)
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