What will be the issue price of the bond

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Problem - A bond payable is dated January 1, 2016, and is issued on that date. The face value of the bond is $100,000, and the face rate of interest is 8%. The bond pays interest semiannually. The bond will mature in five years.

a. What will be the issue price of the bond if the market rate of interest is 6% at the time of issuance?

b. What will be the issue price of the bond if the market rate of interest is 8% at the time of issuance?

c. What will be the issue price of the bond if the market rate of interest is 10% at the time of issuance?

Reference no: EM132866658

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