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On January 1, 2024, Tableau Company issues $20 million of 7% bonds, due in nine years, with interest payable semiannually on June 30 and December
On January 1, 2024, Tableau Company issues $20 million of 7% bonds, due in nine years, with interest payable semiannually on June 30 and December 31 each year. Use a financial calculator or Excel. Required: 1. If the market rate is 6%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. 2. If the market rate is 7%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. 3. If the market rate is 8%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. (Do not round intermediate calculations. Round final answer to the nearest dollar amount. Enter your answer in dollars, not in millions.)
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