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Determine the issue price of the bonds

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Problem - Hosmer Corporation issued $120,000 par value, 8%, 4-year bonds (i.e., there were 120 of $1,000 par value bonds in the issue). Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1. Determine the issue price of the bonds if the market rate of interest is 10%.

Reference no: EM132458286

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