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ServiceMaster Company issues $100,000 in bonds, due in five years with 9 percent interest payable semi-annually at year-end. At the time of issue, the market
ServiceMaster Company issues $100,000 in bonds, due in five years with 9 percent interest payable semi-annually at year-end. At the time of issue, the market rate for such bonds is 11 percent.
(1) principal:
(2) interest payment per 6-months:
Q. What is the value (issue price) of these bonds?
Present value of the principal:
Present value of the interest payments:
Present value (selling price) of the bonds :
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