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E 10-5: Computing Issue Prices of Bonds for Three Cases Berengar Industries is planning to issue $500,000 worth of bonds that mature in 10 years
E 10-5: Computing Issue Prices of Bonds for Three Cases Berengar Industries is planning to issue $500,000 worth of bonds that mature in 10 years and pay 6 percent interest each June 30 and December 31. All of the bonds will be sold on January 1, 2014. Required: Compute the issue (sale) price on January 1, 2014, for each of the following independent cases (show computations): a. Case A: Market (yield) rate, 4 percent. b. Case B: Market (yield) rate, 6 percent. c. Case C: Market (yield) rate, 8 percent
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