Grouper Corporation issues $$480,000$ of $8\%$ bonds, due in $10$ years, with interest payable semiannually. At the time of issue, the market rate for such bonds is $10\%.$

Compute the issue price of the bonds. $($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and the final answer to $0$ decimal places, e$.$g$.58,971.)$

Answer rating: 100% (QA)

To compute the issue price of the bonds we need to calculate the present value of the bonds future c... View the full answer