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Haste Enterprises issues 15-year $1.000.000 bonds that pay semiannual interest of $50.000. If the effective annual rate of interest is 12%, what is the issue
Haste Enterprises issues 15-year $1.000.000 bonds that pay semiannual interest of $50.000. If the effective annual rate of interest is 12%, what is the issue price of the bonds? Some relevant and irrelevant present value factors: PV of ordinary annuity of $1: n= 15:1= 12% is 6.81086 **PV of $t: n= 15; i = 12% is 0.18270 PV of ordinary annuity of $1: n=30: -6.0% is 13.75483 **PV of $t: n= 30; 1= 6.0% is 0.17411 Multiple Choice $1.000.000 $862352 $1.688,242 0 $929,852
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