In: Accounting
The following terms relate to independent bond issues:
500 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
500 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
800 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
2,000 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments
Required:
Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. Refer to the tables above for present value factors. If required, round all calculations to the nearest dollar.