Question
Issue Price The following terms relate to independent bond issues: a.580 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments b.580 bonds;
Issue Price The following terms relate to independent bond issues:
a.580 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
b.580 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
c.870 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
d. 2,150 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. | $? |
b. | $? |
c. | $? |
d. | $? |
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