Question
Uitimate Butter Popcorn issues 7%, 20-year bonds with a face amount of $44,000. The market interest rate for bonds of similar risk and maturity is
Uitimate Butter Popcorn issues 7%, 20-year bonds with a face amount of $44,000. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price will the bonds issue? ( PV of $1, PV of $1. FVA of $1, and PVA of $1 ) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round "Market interest rate" to 1 decimal place.) Answer is complete but not entirely correct. Bond Characteristies Amount Face amount 5 44,000 Interest payment s 1,540 Market interest rate 3.0% Number of periods 400 Issue price _____?
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