Gerber corporation issues 20 year, 2 000,000 bonds with a stated interest rate of 8%. the bonds pay interest semiannually on june 30 and dec 31. if the effective annual rate of interest is 10% what is the issue price of bonds?

10 points 4 Gerber Corporation issues 20-year, $2,000,000 bonds with a stated interest rate of 8 %. The 5 bonds pay interest semiannually on June 30 and December 31. If the effective annual rate of 6 interest is 10 % , what is the issue price of the bonds? 7 8 Some relevant and irrelevant present value factors: PV of ordinary annuity of $1: n 20; i - 10 % is 8.51356 **PV of $1: n 20; i - 10 % is 0.14864 10 11 12 *PV of ordinary annuity of $1: n 40; i 5 % is 17.5909 *PV of $1: n 40; i =5 % is 0.14205 13 14 15 16