Question: A company issues 6%, 5 year bonds with a par value of $800,000 and semiannual interest payments. On the issue date, the annual market rate

A company issues 6%, 5 year bonds with a par value

A company issues 6%, 5 year bonds with a par value of $800,000 and semiannual interest payments. On the issue date, the annual market rate of interest is 8%. The following information is taken from present value tables: Present value of an annuity for 10 periods at 3% 8.5302 Compute the issue (selling) price of the bonds. Present value of an annuity for 10 periods at 4% 8.1109 Present value of 1 due in 10 periods at 3% 0.7441 Present value of 1 due in 10 periods at 4% 0.6756 BIT T ER

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