Question
On April 1, 2023, ET Inc. has available for issue $332,000 bonds due in four years. Interest at the rate of 4.0% is to be
On April 1, 2023, ET Inc. has available for issue $332,000 bonds due in four years. Interest at the rate of 4.0% is to be paid quarterly. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
Market interest rate: A. 5% b. 4% c. 3%. Issue price of the bonds: a.? b. ? c.? Part 2
On October 1, ET Inc. has available for issue a $314,000 bond due in eight years. Interest at the rate of 3.5% is to be paid semiannually. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to 2 decimal places.) MARKET INTEREST RATE: A. 2.5% B. 3.5% C. 4.25%
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