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What is the bonds issue selling price

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Question

Marwick Corporation issues 8%, 5 year bonds with a par value of $1,100,000 and semiannual interest payments.

On the issue date, the annual market rate for these bonds is 6%. What is the bond's issue (selling) price, assuming the following Present Value factors:

1n= 
i=
Present Value of an Annuity (series of payments) (Present value of 1 single sum)

5

8%

3.9927

0.6806

10

4%

8.1109

0.6756

5

6%

4.2124

0.7473

10

3%

8.5302

0.7441

Reference no: EM132316385

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