Question
Issue Price of a Bond Lunar, Inc., plans to issue $1,000,000 of 10% bonds that will pay interest semiannually and mature in 5 years. Assume
Issue Price of a Bond Lunar, Inc., plans to issue $1,000,000 of 10% bonds that will pay interest semiannually and mature in 5 years. Assume that the effective interest rate is 12% per year compounded semiannually. Calculate the selling price of the bonds.
Use financial calculator or Excel to calculate answers. Round answers to the nearest whole number.
| Selling price of bonds is | $Answer |
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Merchandising Math A Managerial Approach
Authors: Doris Kincade, Fay Gibson, Ginger Woodard
1st Edition
0130995886, 978-0130995889
