On October 1, 2020, Eastern Timber Inc. has available for issue $850,000 bonds due in four...

On October 1, 2020, Eastern Timber Inc. has available for issue $850,000 bonds due in four years. Interest at the rate of 5.00% is to be paid quarterly. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

a) 6%

b) 5%

c) 4%

Expert Solution

ekkarill92 answered 11 months ago

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