Citywide Company issues bonds with a par value of $79,000 on their stated issue date. The bonds mature in seven years and pay 12% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 10%.
1. What is the amount of each semiannual interest payment for these bonds?
2. How many semiannual interest payments will be made on these bonds over their life?
3. Use the interest rates given to select whether the bonds are issued at par, at a discount, or at a premium.

Answer rating: 100% (QA)

1 Par Value Maturity 79000 Semiannual Rate 12 2 6 Calculat... View the full answer