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Question 23 (6 points) Pizza Planet issues 6%, 10-year bonds with a face amount of $80,000 on January 1, 2019. The market interest rate
Question 23 (6 points) Pizza Planet issues 6%, 10-year bonds with a face amount of $80,000 on January 1, 2019. The market interest rate for bonds of similar risk and maturity is 8%. Interest i paid semi-annually on June 30 and December 31. Calculate the issue price of the bond, using the correct choice from the following PV factors for 20 periods: PV $1 3% 4% 6% 8% .554 .456 .312 .215 PVA 3% 4% 6% 8% 14.88 13.59 11.47 9.82 $69,096 $80,032 $80,000 none of the above.
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