Issue Price The following terms relate to independent bond issues: a. 420 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments b. 420 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments c. 900 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments d. 2,100 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. TABLE 9-2 Present Value of $1 (N) Periods 2% 3% 4% 5% 6% 7% 8% 10% 12% 15% 1 .98039 .97087 .96154 .95238 .94340 .93458 .92593 .90909 .89286 .86957 2345678 96117 .94260 .92456 .90703 .89000 .87344 .85734 .82645 .79719 .75614 .94232 .91514 .88900 .86384 .83962 .81630 .79383 .75131 .71178 .65752 .92385 .88849 .85480 .82270 .79209 .76290 .73503 .68301 .63552 .57175 .90573 .86261 .82193 .78353 .74726 .71299 .68058 .62092 .56743 49718 .88797 .83748 .79031 .74622 .70496 .66634 .63017 .56447 .50663 43233 .87056 .81309 .75992 .71068 .66506 .62275 .58349 .51316 .45235 .37594 .85349 .78941 .73069 .67684 .62741 .58201 .54027 .46651 .40388 .32690 9 .83676 .76642 .70259 .64461 .59190 .54393 .50025 .42410 .36061 28426 10 .82035 .74409 .67556 .61391 .55839 .50835 .46319 .38554 .32197 24718 123456780222223 11 .80426 .72242 .64958 .58468 .52679 .47509 .42888 .35049 .28748 21494 .78849 .70138 .62480 55684 .49697 .44401 .39711 .31863 .25668 .18691 .77303 .68095 .60057 53032 .46884 .41496 .36770 .28966 .22917 .16253 .75788 .66112 .57748 .50507 44230 .38782 .34046 26333 .20462 .14133 .74301 .64186 55526 48102 .41727 .36245 .31524 .23939 .18270 .12289 .72845 .62317 53391 .45811 39365 .33873 .29189 .21763 .16312 .10686 .71416 .60502 .51337 43630 .37136 .31657 .27027 .19784 .14564 .09293 .70016 .58739 49363 41552 .35034 .29586 .25025 .17986 .13004 .08081 19 .68643 .57029 47464 .39573 .33051 .27651 .23171 .16351 .11611 .07027 .67297 .55368 45639 .37689 31180 .25842 .21455 .14864 .10367 .06110 .64684 .52189 42196 34185 27751 .22571 .18394 .12285 .08264 .04620 .62172 49193 .39012 31007 24698 .19715 .15770 .10153 .06588 .03493 .59758 .46369 .36069 28124 21981 .17220 .13520 .08391 .05252 .02642 .57437 .43708 33348 25509 .19583 .15040 .11591 .06934 .04187 .01997 .55207 41199 .30832 23138 .17411 .13137 .09938 .05731 .03338 .01510 (N) Periods 2% 3% 4% 5% 6% 7% 8% 10% 12% 15% 1 98039 .97087 .96154 .95238 2 1.94156 1.91347 1.88609 1.85941 3 2.88388 2.82861 2.77509 2.72325 .94340 1.83339 1.80802 2.67301 2.62432 .93458 .92593 .90909 .89286 .86957 1.78326 1.73554 2.57710 2.48685 1.69005 1.62571 2.40183 2.28323 4 3.80773 3.71710 3.62990 3.54595 3.46511 3.38721 3.31213 3.16987 3.03735 2.85498 5 4.71346 4.57971 4.45182 4.32948 4.21236 4.10020 3.99271 3.79076 3.60478 3.35216 6 5.60143 5.41719 5.24214 5.07569 4.91732 4.76654 4.62288 4.35526 4.11141 3.78448 7 6.47199 6.23028 6.00205 5.78637 5.58238 5.38929 5.20637 4.86842 4.56376 4.16042 8 7.32548 7.01969 6.73274 6.46321 6.20979 5.97130 5.74664 5.33493 4.96764 4.48732 9 8.16224 7.78611 7.43533 7.10782 6.80169 6.51523 6.24689 5.75902 5.32825 4.77158 10 8.98259 8.53020 8.11090 7.72173 7.36009 7.02358 6.71008 6.14457 5.65022 5.01877 11 9.78685 9.25262 8.76048 8.30641 7.88687 7.49867 7.13896 6.49506 5.93770 5.23371 12 10.57534 9.95400 9.38507 8.86325 8.38384 7.94269 7.53608 6.81369 6.19437 5.42062 13 11.34837 10.63496 9.98565 9.39357 8.85268 8.35765 7.90378 7.10336 6.42355 5.58315 14 12.10625 11.29607 10.56312 9.89864 9.29498 8.74547 8.24424 7.36669 6.62817 5.72448 15 12.84926 11.93794 11.11839 10.37966 9.71225 9.10791 8.55948 7.60608 6.81086 5.84737 676222220 16 17 18 19 24 28 13.57771 12.56110 11.65230 10.83777 14.29187 13.16612 12.16567 11.27407 10.47726 14.99203 13.75351 12.65930 11.68959 10.82760 15.67846 14.32380 13.13394 12.08532 11.15812 16.35143 14.87747 13.59033 12.46221 11.46992 10.59401 17.65805 15.93692 14.45112 13.16300 12.04158 11.06124 18.91393 16.93554 15.24696 13.79864 12.55036 11.46933 20.12104 17.87684 15.98277 14.37519 13.00317 21.28127 18.76411 16.66306 14.89813 10.10590 9.44665 8.85137 7.82371 6.97399 5.95423 9.76322 9.12164 8.02155 7.11963 6.04716 10.05909 10.33560 9.37189 8.20141 7.24967 6.12797 9.60360 8.36492 7.36578 6.19823 9.81815 8.51356 7.46944 6.25933 10.20074 8.77154 7.64465 6.35866 10.52876 8.98474 7.78432 6.43377 11.82578 10.80998 9.16095 7.89566 6.49056 13.40616 12.13711 11.05108 9.30657 7.98442 6.53351 30 22.39646 19.60044 17.29203 15.37245 13.76483 12.40904 11.25778 9.42691 8.05518 6.56598