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E 1 0 - 4 L 0 1 0 - 2 , 1 0 - 4 , , 1 0 - 5 Computing Issue Prices
E L Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium Kalani Corporation is planning to issue bonds with a face value of $ and a coupon rate of percent. The bonds mature in years and pay interest semiannually every June and December All of the bonds will be sold on January of this year. Required: Compute the issue sales price on January of this year for each of the following independent cases show computations: a Case A: Market interest rate annual: percent. b Case B: Market interest rate annual: percent. c Case C: Market interest rate annual: percent. Please complete the following picture.
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Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium
Kalani Corporation is planning to issue bonds with a face value of $ and a coupon rate of percent. The bonds mature in years and pay interest semiannually every June and December All of the bonds will be sold on January of this year.
Required:
Compute the issue sales price on January of this year for each of the following independent cases show computations:
a Case A: Market interest rate annual: percent.
b Case B: Market interest rate annual: percent.
c Case C: Market interest rate annual: percent.
Please complete the following picture.
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