On January 1, 2020, Ruby Inc. issued 3,000 $1,000 par value bonds with a stated rate of

Question:

On January 1, 2020, Ruby Inc. issued 3,000 $1,000 bonds with a stated rate of 6% and a 10-year maturity. Interest is payable semiannually on June 30 and December 31.
Required:
What is the issue price if the bonds are sold to yield 8%? (Note: Round to nearest dollar.)
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,...