Question
Sunland College is about to issue $0.92 million of 10-year bonds that pay a 6% annual interest rate, with interest payable semi-annually. Calculate the issue
Sunland College is about to issue $0.92 million of 10-year bonds that pay a 6% annual interest rate, with interest payable semi-annually. Calculate the issue price of these bonds if the market interest rate is (a) 5%, (b) 6%, and (c) 7%. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to 0 decimal places, e.g. 5,275.) Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1
(a) | Market interest rate 5% | $enter a dollar amount rounded to 0 decimal places | |
---|---|---|---|
(b) | Market interest rate 6% | $enter a dollar amount rounded to 0 decimal places | |
(c) | Market interest rate 7% | $enter a dollar amount rounded to 0 decimal places |
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