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Determining Bond Prices Lunar, Inc., plans to issue $1,100,000 of 8% bonds that will pay interest semiannually and mature in 5 years. Assume that the

Determining Bond Prices

Lunar, Inc., plans to issue $1,100,000 of 8% bonds that will pay interest semiannually and mature in 5 years. Assume that the effective interest rate is 10% per year compounded semiannually. Compute the selling price of the bonds. Use Tables 2 and 3 in Appendix A near the end of the book.

Round answer to the nearest whole number.

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