QUESTION 7

1. Brook Corporation issued $400,000 of 15-year bonds on January 1. The bonds pay interest on January 1 and July 1 with a stated annual rate of 8 percent. If the market rate of annual interest at the time the bonds are sold is 6 percent, what will be the issue price of the bonds? (If PV tables are used, select the closest answer from the options provided.)

   	A.	$468,376
   	B.	$443,476
   	C.	$330,744
   	D.	$478,402

2 points

QUESTION 8

1. When the market rate of interest was 10%, Wallace Corporation issued $1,200,000, 12%, 8-year bonds that pay interest semiannually. The selling price of this bond issue was: (If PV tables are used, select the closest answer from the options provided.)

   	A.	$1,080,720
   	B.	$1,330,053
   	C.	$1,513,692
   	D.	$1,078,674