6. Using either your calculator or the tables in Appendix 14A, assume on January 1, 2023 Davids Tea issues a $1,000, 10-year, 4% (coupon rate) bond that pays a semiannual interest payment and currently yields a market adjusted interest rate of 5%. Calculate the issue price/market price of the bond.

Five-year, 6% bonds with a $100,000 par value are issued at a price of $91,893. Interest is paid semiannually, and the market rate is 8% on the issue date.