Trew Company plans to issue $900,000, 10-year, 6 percent bonds. Interest is payable semiannually on June 30

Question:

Trew Company plans to issue $900,000, 10-year, 6 percent bonds. Interest is payable semiannually on June 30 and December 31. All of the bonds will be sold on January 1, 2011. Determine the issuance price of the bonds assuming a market yield of 8.5 percent.