Question
Wolfpack, Inc. issues a bond with a stated (coupon) interest rate of 8%, face value of $100,000, and due in 15 years. Interest payments are
Wolfpack, Inc. issues a bond with a stated (coupon) interest rate of 8%, face value of $100,000, and due in 15 years. Interest payments are made semi-annually. The market rate for this type of bond is 6%.
What is the issue price of the bond?
a. $121,487
b. $119,601
c. $100,000
d. $117,413
e. $80,458
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Financial Accounting
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
5th edition
1259914895, 978-1259914898
