Determining Selling Prices of Bonds Under Different Interest Assumptions

Olay Inc. issues $150,000, 8%, 10-year bonds payable on January 1, 2020. Calculate the selling price of the bonds under the following separate assumptions.

• Round your answer to the nearest whole number.
• Do not use negative signs with your answers.

	a. The bonds pay cash interest annually ($12,000) and the market rate of interest on similar bonds is 10%.
	b. The bonds pay cash interest annually ($12,000) and the market rate of interest on similar bonds is 8%.
	c. The bonds pay cash interest annually ($12,000) and the market rate of interest on similar bonds is 6%.
	d. The bonds pay cash interest semiannually ($6,000) and the market rate of interest on similar bonds is 10%.
	e. The bonds pay cash interest semiannually ($6,000) and the market rate of interest on similar bonds is 8%.
	f. The bonds pay cash interest semiannually ($6,000) and the market rate of interest on similar bonds is 6%.