On January 1, 2020, University Theatres issued $500,000 face value of bonds. The stated rate is 8%,

Question:

On January 1, 2020, University Theatres issued $500,000 of bonds. The stated rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in 15 years.
Required:
Calculate the price at which the bonds are issued assuming the market rate of interest is (a) 6% and (b) 10%.
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...