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Issue Price The following terms relate to independent bond issues: 420 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 420 bonds;
Issue Price
The following terms relate to independent bond issues:
- 420 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
- 420 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
- 820 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
- 2,190 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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