On December 31, 2011, University Theatres issued $500,000 face value of bonds. The stated rate is 8

Question:

On December 31, 2011, University Theatres issued $500,000 of bonds. The stated rate is 8 percent, and interest is paid semiannually on June 30 and December 31. The bonds mature in 15 years.

Required:
Calculate at what price the bonds are issued assuming the market rate of interest is
(a) 6 percent
(b) 10 percent.
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...