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issue price needed E10-3 (Algo) Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium L010-2, 10-4, 10-5 LaTanya Corporation
issue price needed
E10-3 (Algo) Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium L010-2, 10-4, 10-5 LaTanya Corporation is planning to issue bonds with a face value of $103,500 and a coupon rate of 7 percent. The bonds mature in seven years. Interest is paid annually on December 31. All of the bonds will be sold on January 1 of this year. (FV of \$1. PV of \$1. EVA of \$1. and PVA of \$1) Note: Use appropriate foctor(s) from the tables provided. Required: Compute the issue (sales) price on January 1 of this year for each of the following independent cases: a. Case A: Market interest rate (annual): 7 percent. b. Case B. Market interest rate (annua): 5 percent. c. Case C Market interest rate (annual): 8 percent. Complete this question by entering your answers in the tabs below. Compute the issue (sales) price on January 1 of this year for the following independent case: Case A : Market interest rate (annual): 7 percent. (Round your intermediate calculations and final answer to whole dollars.) Step by Step Solution
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