Calculate at what price the bonds are issued

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CALCULATING BOND ISSUE PRICE
On December 31, 2008, University Theatres issued $500,000 face value of bonds. The stated rate is 6 percent, and interest is paid semiannually on June 30 and December 31. The bonds mature in 10 years.

a. Assuming the market rate of interest is 4 percent, calculate at what price the bonds are issued.

b. Assuming the market rate of interest is 8 percent, calculate at what price the bonds are issued.

Reference no: EM131342655

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