In: Accounting
The following terms relate to independent bond issues:
620 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
620 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
790 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
2,190 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments
Use the appropriate present value table:
PV of $1 and PV of Annuity of $1
Required:
Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar.
Situation | Selling Price of the Bond Issue |
a. | $ |
b. | $ |
c. | $ |
d. | $ |