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On October 1, 2020, Eastern Timber Inc. has available for issue $800,000 bonds due in four years. Interest at the rate of 5.50% is to
On October 1, 2020, Eastern Timber Inc. has available for issue $800,000 bonds due in four years. Interest at the rate of 5.50% 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.)
a. | 6.5% | |
b. | 5.5% | |
c. | 4.5% |
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