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Issue Price of a Bond Maggie Enterprises issued $100,000 of 6%, five-year bonds with interest payable semiannually. Determine the issue price if the bonds are
Issue Price of a Bond Maggie Enterprises issued $100,000 of 6%, five-year bonds with interest payable semiannually. Determine the issue price if the bonds are priced to yield (a) 6%, (b) 10%, and (c) 2%.
Use financial calculator or Excel to calculate answers. Round answers to the nearest whole number.
a.) | 100,000 |
b.) | 84,555 (wrong) |
c.) | 118,943 |
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