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The following information pertains to Camp Corp.s issuance of bonds on July 1, 20X3: Face amount $800,000 Term Ten years Stated interest rate 6% Interest
The following information pertains to Camp Corp.s issuance of bonds on July 1, 20X3:
| Face amount | $800,000 |
| Term | Ten years |
| Stated interest rate | 6% |
| Interest payment dates | Annually on July 1 |
| Yield | 9% |
|
| At 6% | At 9% |
| Present value of one for ten periods | 0.558 | 0.422 |
| Future value of one for ten periods | 1.791 | 2.367 |
| Present value of ordinary annuity of one for ten periods | 7.360 | 6.418 |
What should be the issue price for each $1,000 bond?
$807
$864
$1,000
$700
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