West Fork Corporation issued $ 100,000 par value, 6%, four- year bonds ( i. e., there were

Question:

West Fork issued $ 100,000 6%, four- year bonds ( i. e., there were 100 $ 1,000 bonds in the issue). Interest is payable annually, with the first inter-est payment made at the end of the period. West Fork paid $ 1,800 in underwriting fees. Determine the issue price of the bonds, assuming that the market rate of interest is 8%. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...