Question: On January 1, a company issues bonds dated January 1 with a par value of $290.000. The bonds mature in 3 years. The contract

On January 1, a company issues bonds dated January 1 with a par value of $290.000. The bonds mature in 3 years. The contract rate is 9% and interest is paid semiannually on June 30 and December 31. The market rate is 10% Using the present value factors below, the issue (selling) price of the bonds is Present Value of an Annuity (series of payments) Present value of 1 ne SN (single sum) 3 9.0% 2.5313 0.7722 6 4.5% 5.1579 0.7679 3 10.0% 2.4869 0.7513 6 5.0% 5.0757 0.7462

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