Issue Price The following terms relate to independent bond issues: a. 650 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments b. 650 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments C. 850 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments d. 1,900 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. 600,718 b. 599,806 x C. 744,072 d. $ 1,096,041 TABLE 9-2 Present Value of $1 (N) Periods 2% 3% 4% 5% 6% 7% 8% 10% 12% 15% 1 93458 2 .97087 .94260 91514 .86957 .75614 .65752 3 4 88849 .98039 .96117 .94232 .92385 .90573 .88797 .87056 .85349 96154 92456 .88900 .85480 .82193 .79031 .75992 .94340 .89000 .83962 .79209 .74726 .70496 .87344 .81630 .76290 .71299 .66634 -57175 .89286 .79719 .71178 .63552 .56743 50663 45235 40388 5 49718 6 .92593 .85734 .79383 .73503 .68058 .63017 .58349 .54027 -50025 46319 42888 .86261 .83748 .81309 43233 7 62275 .58201 8 9 .83676 36061 .32197 .66506 .62741 .59190 .55839 -52679 49697 10 .82035 .80426 11 .73069 .70259 67556 .64958 .62480 .60057 .57748 28748 .78941 .76642 .74409 .72242 .70138 .68095 .66112 .64186 .62317 12 13 .95238 .90703 .86384 .82270 .78353 .74622 .71068 .67684 .64461 .61391 .58468 .55684 .53032 .50507 48102 45811 43630 41552 39573 37689 34185 31007 28124 25509 .23138 46884 54393 .50835 47509 44401 41496 .38782 36245 .33873 .31657 .78849 .77303 .75788 .74301 .72845 .71416 .70016 .68643 .67297 14 .90909 .82645 .75131 .68301 .62092 .56447 .51316 .46651 .42410 .38554 35049 .31863 .28966 .26333 .23939 .21763 .19784 .17986 . 16351 .14864 .12285 .10153 .08391 .06934 .05731 44230 15 16 55526 -53391 .51337 49363 17 .60502 .58739 37594 32690 28426 24718 21494 .18691 .16253 .14133 .12289 .10686 .09293 .08081 .07027 .06110 04620 03493 .02642 .01997 .01510 18 .39711 .36770 .34046 .31524 .29189 27027 25025 23171 21455 .18394 . 15770 .13520 .11591 .09938 29586 25668 .22917 20462 18270 16312 14564 13004 11611 10367 08264 .06588 05252 .04187 .03338 19 .57029 47464 .27651 41727 39365 37136 35034 33051 31180 27751 24698 21981 .19583 .17411 20 .55368 45639 25842 22 .64684 42196 22571 24 .52189 49193 46369 43708 .62172 .59758 .57437 26 39012 36069 33348 30832 .19715 .17220 .15040 .13137 28 30 .55207 41199 TABLE 9-4 Present Value of Annuity of $1 (N) Periods 2% 3% 4% 5% 6% 7% 8% 10% 12% 15% 1 2. 3 97087 1.91347 2.82861 3.71710 4.57971 5.41719 4 5 6 .98039 1.94156 2.88388 3.80773 4.71346 5.60143 6.47199 7.32548 8.16224 8.98259 9.78685 10.57534 11.34837 12.10625 .95238 1.85941 2.72325 3.54595 4.32948 5.07569 5.78637 6.46321 7.10782 7.72173 8.30641 8.86325 7 8 9 6.23028 7.01969 7.78611 8.53020 9.25262 10 .93458 1.80802 2.62432 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 11 12 .96154 1.88609 2.77509 3.62990 4.45182 5.24214 6.00205 6.73274 7.43533 8.11090 8.76048 9.38507 9.98565 10.56312 11.11839 11.65230 12.16567 12.65930 13.13394 13.59033 14.45112 15.24696 15.98277 16.66306 17.29203 .94340 1.83339 2.67301 3.46511 4.21236 4.91732 5.58238 6.20979 6.80169 7.36009 7.88687 8.38384 8.85268 9.29498 9.71225 10.10590 10.47726 10.82760 11.15812 11.46992 12.04158 12.55036 13.00317 13.40616 .90909 1.73554 2.48685 3.16987 3.79076 4.35526 4.86842 5.33493 5.75902 6.14457 6.49506 6.81369 7.10336 7.36669 7.60608 7.82371 8.02155 8.20141 8.36492 8.51356 8.77154 .92593 1.78326 2.57710 3.31213 3.99271 4.62288 5.20637 5.74664 6.24689 6.71008 7.13896 7.53608 7.90378 8.24424 8.55948 8.85137 9.12164 9.37189 9.60360 9.81815 10.20074 10.52876 10.80998 11.05108 13 9.39357 9.95400 10.63496 11.29607 11.93794 12.56110 13.16612 13.75351 14.32380 14.87747 .89286 1.69005 2.40183 3.03735 3.60478 4.11141 4.56376 4.96764 5.32825 5.65022 5.93770 6.19437 6.42355 6.62817 6.81086 6.97399 7.11963 7.24967 7.36578 7.46944 7.64465 7.78432 7.89566 7.98442 8.05518 .86957 1.62571 2.28323 2.85498 3.35216 3.78448 4.16042 4.48732 4.77158 5.01877 5.23371 5.42062 5.58315 5.72448 5.84737 5.95423 6.04716 6.12797 6.19823 6.25933 6.35866 6.43377 6.49056 6.53351 6.56598 14 15 16 17 18 19 12.84926 13.57771 14.29187 14.99203 15.67846 16.35143 17.65805 18.91393 20.12104 21.28127 22.39646 9.89864 10.37966 10.83777 11.27407 11.68959 12.08532 12.46221 13.16300 13.79864 14.37519 14.89813 15.37245 20 22 10.05909 10.33560 10.59401 11.06124 11.46933 11.82578 12.13711 12.40904 15.93692 16.93554 17.87684 18.76411 19.60044 24 26 28 30 8.98474 9.16095 9.30657 9.42691 13.76483 11.25778