Question
Issue Price The following terms relate to independent bond issues: 670 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 670 bonds;
Issue Price
The following terms relate to independent bond issues:
670 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
670 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
780 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
1,890 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. | $fill in the blank 1 |
| b. | $fill in the blank 2 |
| c. | $fill in the blank 3 |
| d. | $fill in the blank 4 |
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
7th edition
978-0077632427, 77632427, 78025656, 978-0078025655
