Hartford Research issues bonds dated January 1, 2013, that pays interest semiannually on June 30 and December 31 The bonds have a $26,000 par value and an annual contract rate of 12 , and they mature in 10 years Required Consider the following situation The market rate at the date of issuance is 10...

n number of period 10 x 2 20 semiannual period i 12 Interest Cash on Total PV ...

Hartford Research issues bonds dated January 1, 2013, that pays interest semiannually on June 30 and December

Question:

Hartford Research issues bonds dated January 1, 2013, that pays interest semiannually on June 30 and December 31. The bonds have a $26,000 and an annual contract rate of 12%, and they mature in 10 years.
Required:
Consider the following situation.
The market rate at the date of issuance is 10%.

Complete the below table to determine the bonds' issue price on January 1, 2013. TABLE VALUES ARE BASED ON: i = PRESENT

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...