Issue Price The following terms relate to independent bond issues: a. 530 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments b. 530 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 5 C. 800 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments d. 1,960 bonds; $500 face value; 12% stated rate; 15 years, semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar. Situation Selling Price of the Bond Issue a. b. c. d. 5% 69 2% 10% 12% 15% TABLE 9-2 Present Value of $1 (N) Periods 39 1 98039 97087 96154 2 96117 94260 92458 3 94232 91514 88900 4 92385 88849 85480 5 90573 86261 82193 6 88797 83748 .79031 7 87056 81309 75992 8 85349 78941 73000 9 83678 76642 70250 10 82035 74409 67556 11 80426 72242 64958 12 78849 70138 62480 13 77303 68096 60052 14 75788 66112 57748 15 74301 64186 55526 16 72845 62317 53391 17 71416 60502 51337 18 70016 58739 49363 19 58643 57029 47464 20 67297 55360 45639 22 54684 52189 42195 24 62172 49190 39012 26 59758 46369 36000 28 57437 43708 33348 30 55207 41190 30832 95238 90703 36384 82270 78353 74622 71068 67684 64461 61391 58468 55684 53032 50507 48102 45811 43630 41552 39573 37680 34185 31007 28124 25500 23138 94340 89000 83962 79209 74726 70496 56506 62741 59190 55839 52679 49697 46841 44230 41727 39365 37138 35034 33051 31180 27751 24698 21981 19580 17411 93458 87344 81630 75230 71299 56634 62275 58201 54390 50835 47509 44401 41496 38782 36245 33873 31657 29580 27651 25842 22571 19715 17220 15040 13137 90593 85734 79383 73503 68058 83017 58349 54027 50025 46319 42888 39711 38770 34046 31524 29189 27027 25025 23171 21455 18394 15770 13520 11501 09908 90909 80645 75131 68301 62092 56447 51316 40651 42410 38554 35049 31863 28906 26333 23939 21763 19784 17986 .16351 14864 12285 10153 08391 05934 05731 99286 79719 71178 63552 56743 50663 45235 00388 38061 32197 28748 25668 22917 20462 18270 16312 14564 13004 11611 10367 08264 05588 05252 04187 03338 86957 75614 65752 57175 49718 43233 37594 32690 28426 24718 21494 18691 16253 14133 12289 10686 09290 08081 07027 06110 04620 03430 02642 01937 01510 TABLE 9-4 Present Value of Annuity of $1 (N) Periods 2% 3 5% 7% 10% 12% 15% 1 2 3 4 5 6 7 8 9 10 11 12 13 98039 194156 288388 3.80773 4.71346 5.60143 6.47199 7.32548 8.16224 8.98259 9.78685 1057534 11.34837 12.10625 12 84926 1357771 1429187 14.99203 1567818 16.35143 17 65805 1891393 20.12104 21 28127 22.39616 97087 1.91347 282861 3.71710 457971 5.41719 623028 7,01909 7.78611 8.53020 925282 9.95400 10.63406 11.29607 11.93794 12.56110 13.16612 13.75351 1432380 14.87747 15.93882 16.93554 17.87084 18.76411 19.60044 96154 1 88609 2.77509 3.62990 4.45182 5.24214 6.00205 6.73274 7.43533 8.11000 8.76048 938507 998505 10.56312 11.11539 11.65230 12 16567 1265000 13.13394 13.59033 14 45112 15.24000 15.98277 16.66306 17.29203 95238 1.85941 2.72325 354585 432948 5.07569 5.78637 6.46321 7.10782 7.72173 830641 8.86325 9.39357 9.89864 10 37906 1083777 11 27407 11 68969 12 08532 12 46221 13.16300 1379864 1437519 14 89813 1537245 91340 183339 267301 3.46511 421236 491732 5.58238 6 20979 6.80169 7.36009 788887 838384 8.85268 9.29498 9.71225 10.10590 1047726 1082760 11.15812 1140992 1204158 12 55006 13.00317 13.40616 13.76483 93458 1 80802 262432 338721 4.10020 4.76654 538929 597130 6.51523 7.02358 7.49867 794269 835765 8.74547 9.10791 9 44065 9.76322 10.05909 10.33560 1059401 11.06124 11 46933 11 82578 12.13711 12 40904 92593 1.78325 257710 3.31213 3.99271 4.62288 5.20637 5.74664 6 24689 6.71008 7.13896 753608 7.90378 8.24424 8.559.00 885137 9.12104 937189 9.60360 981815 10 20074 10.52870 10 80998 11.05108 11.25728 50909 1.73654 248685 3.16987 3.79076 4.35526 4.86842 533193 5.75902 6.14457 6.49506 6.81369 7.10336 730569 7.60508 782371 8.02155 8 20141 8.36492 8.51356 8.77154 8.98474 9.10095 930657 9.42691 89086 1.89005 240183 3.03735 3.60478 4.11141 456376 4.96754 5.32825 5.65022 5.93770 6.19437 6.42355 6.62817 681086 6.97399 7.11963 724967 736578 746944 7.64465 778432 789566 7 98442 8.05518 86957 1.62571 228323 2.85498 3.35216 3.744B 416042 4.48732 4.77158 501877 5.23371 5.42052 5.58315 5.72448 5.34737 5.95423 6.04716 6.12797 6.19823 6.25033 6.35866 6.43377 6.49056 6.53351 6.56598 14 15 16 12 18 19 20 22 24 26 28 30
