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Compute the issue price on january

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Reference no: EM133156533

Question - James Corporation is planning to issue bonds with a face value of $501,500 and a coupon rate of 6 percent. The bonds mature in 10 years and pay interest semi-annually every June 30 and December 31. All of the bonds will be sold on January 1 of this year.

Required - Compute the issue (sales) price on January 1 of this year for each of the following independent cases:

a. Case A: Market interest rate (annual): 4 percent.

b. Case B: Market interest rate (annual): 6 percent.

c. Case C: Market interest rate (annual): 8.5 percent.

Reference no: EM133156533

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