Question
I need help with calculating the price of bonds at par value. Hartford Research issues bonds dated January 1, 2013, that pay interest semiannually on
I need help with calculating the price of bonds at par value.
Hartford Research issues bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. The bonds have a $35,000 par value and an annual contract rate of 10%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.)
The market rate at the date of issuance is 8%. (a) Complete the below table to determine the bonds' issue price on January 1, 2013.
I also need this done for 10% and 12% but it seems that they are all calculated differently.
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