Issue Price

The following terms relate to independent bond issues:

1. 640 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
2. 640 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
3. 750 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
4. 1,850 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments

Use the appropriate present value table:

6% 7% 8% 10% 12% 15% .93458 1.80802 .92593 1.78326 .90909 1.73554 2.48685 3.16987 .89286 1.69005 2.40183 .86957 1.62571 2.28323 2.85498 2.62432 2.57710 3.31213 .94340 1.83339 2.67301 3.46511 4.21236 4.91732 5.58238 6.20979 3.03735 3.60478 3.79076 3.99271 4.62288 3.35216 3.78448 4.35526 4.86842 TABLE 9-4 Present Value of Annuity of $1 (N) Periods 2% 3% 4% 5% 1 .98039 .97087 .96154 .95238 2 1.94156 1.91347 1.88609 1.85941 3 2.88388 2.82861 2.77509 2.72325 4 3.80773 3.71710 3.62990 3.54595 5 4.71346 4.57971 4.45182 4.32948 6 5.60143 5.41719 5.24214 5.07569 7 6.47199 6.23028 6.00205 5.78637 8 7.32548 7.01969 6.73274 6.46321 9 8.16224 7.78611 7.43533 7.10782 10 8.98259 8.53020 8.11090 7.72173 11 9.78685 9.25262 8.76048 8.30641 12 10.57534 9.95400 9.38507 8.86325 13 11.34837 10.63496 9.98565 9.39357 12.10625 11.29607 10.56312 9.89864 15 12.84926 11.93794 11.11839 10.37966 16 13.57771 12.56110 11.65230 10.83777 17 14.29187 13.16612 12.16567 11.27407 18 14.99203 13.75351 12.65930 11.68959 19 15.67846 14.32380 13.13394 12.08532 20 16.35143 14.87747 13.59033 12.46221 22 17.65805 15.93692 14.45112 13.16300 24 18.91393 16.93554 15.24696 13.79864 26 20.12104 17.87684 15.98277 14.37519 21.28127 18.76411 16.66306 14.89813 30 22.39646 19.60044 17.29203 15.37245 4.11141 4.56376 4.96764 5.32825 5.65022 5.20637 5.74664 6.24689 6.71008 7.13896 7.53608 6.80169 7.36009 7.88687 8.38384 7.90378 8.24424 3.38721 4.10020 4.76654 5.38929 5.97130 6.51523 7.02358 7.49867 7.94269 8.35765 8.74547 9.10791 9.44665 9.76322 10.05909 10.33560 10.59401 11.06124 11.46933 11.82578 12.13711 12.40904 4.16042 4.48732 4.77158 5.01877 5.23371 5.42062 5.58315 5.72448 5.84737 5.95423 5.33493 5.75902 6.14457 6.49506 6.81369 7.10336 7.36669 7.60608 7.82371 8.02155 8.20141 8.85268 9.29498 9.71225 10.10590 10.47726 10.82760 11.15812 11.46992 14 5.93770 6.19437 6.42355 6.62817 6.81086 6.97399 7.11963 6.04716 8.55948 8.85137 9.12164 9.37189 9.60360 9.81815 7.24967 7.36578 6.12797 6.19823 8.36492 7.46944 6.25933 10.20074 7.64465 12.04158 12.55036 13.00317 13.40616 10.52876 10.80998 11.05108 11.25778 8.51356 8.77154 8.98474 9.16095 9.30657 7.78432 7.89566 7.98442 8.05518 6.35866 6.43377 6.49056 6.53351 6.56598 28 13.76483 9.42691 TABLE 9-2 Present Value of $1 (N) Periods 2% 3% 4% 5% 6% 7% 8% 10% 12% 15% 1 .96154 .93458 92593 .89286 .86957 2 .95238 .90703 .86384 .92456 .88900 .79719 .87344 .81630 3 .71 178 4 .85480 .76290 .63552 97087 94260 91514 .88849 .86261 .83748 .81309 .78941 5 .82193 .71299 98039 .96117 94232 .92385 .90573 .88797 .87056 .85349 .83676 .82035 56743 .94340 .89000 .83962 .79209 .74726 .70496 .66506 .62741 .59190 .55839 .85734 .79383 .73503 68058 .63017 .58349 .54027 6 .66634 50663 .82270 .78353 .74622 .71068 .67684 .64461 .61391 .79031 .75992 .73069 7 .75614 .65752 .57175 49718 43233 37594 32690 28426 24718 45235 8 40388 9 .76642 .70259 .36061 50025 46319 10 .74409 11 .80426 .67556 .64958 .62480 .58468 42888 on 2 3 .62275 .58201 .54393 .50835 .47509 44401 .41496 .38782 .36245 21494 .90909 .82645 .75131 .68301 .62092 56447 -51316 .46651 42410 .38554 .35049 .31863 28966 26333 .23939 .21763 .19784 .17986 .16351 . 14864 .12285 .32197 .28748 .25668 22917 12 .52679 49697 46884 44230 .78849 .55684 .18691 13 .77303 .60057 .16253 14 .14133 .75788 .74301 .57748 .55526 .39711 .36770 34046 31524 29189 .27027 15 41727 .12289 .53032 .50507 48102 45811 43630 41552 20462 18270 .16312 .14564 .53391 .39365 .33873 .10686 16 17 .72845 .71416 .72242 .70138 .68095 .66112 .64186 .62317 .60502 .58739 .57029 .55368 52189 49193 46369 43708 37136 .31657 18 .29586 .13004 .51337 49363 47464 45639 35034 33051 .25025 .23171 19 .27651 20 39573 37689 34185 .09293 .08081 .07027 .06110 .04620 .03493 .70016 .68643 .67297 .64684 .62172 .59758 .57437 31180 25842 .22571 22 24 26 27751 .11611 .10367 .08264 .06588 .05252 .42196 39012 36069 33348 30832 31007 21455 .18394 . 15770 .13520 .11591 09938 24698 21981 .19583 .19715 . 17220 .15040 .13137 28124 25509 23138 .10153 .08391 .06934 28 .04187 .03338 .02642 .01997 .01510 30 .55207 41199 .17411 .05731