Issue Price

The following terms relate to independent bond issues:

1. 540 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
2. 540 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
3. 790 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
4. 1,940 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.

SituationSelling Price of the Bond Issue:

a.$b.$c.$d.$