Issue Price

The following terms relate to independent bond issues:

a. 520 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments

b. 520 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments

c. 770 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments

d. 1,960 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.

Selling Price of the Bond Issue

a. $___________

b. $___________

c. $____________

d. $____________