Determine the selling price for each bond issue

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Reference no: EM132732

Question :

The subsequent terms relate to independent bond issues:

a.610 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments

b.610 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments

c.890 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments

d.2,120 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments

Required:

Consider the market rate of interest is 10%, determine the selling price for each bond issue. Refer to the tables above for present value factors. If required, do not round intermediate calculations and round all final answers to the nearest dollar.

Situation Selling Price of the Bond Issue

a. $

b. $

c. $

d. $

Reference no: EM132732

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