Patterson Company issued 30-year bonds on June 30. The face value of the bonds was $750,000. The stated interest rate on the bonds was 6%. The market rate of interest at the time of issuance was 4% Patterson also issued another set of bonds on August 31, These bonds were 20-year bonds and had a face value of $556,000. The stated rate of interest on these bonds was 5%. The market rate of interest at the time these bonds were issued was 8%. Both sets of bonds pay interest semiannually.

Required:
Calculate the issuance price of these bonds.

Answer rating: 100% (QA)

1 Issued 30year bonds having Face Value of 750000 Interest rate on bonds 6 Market rate of interest 4 ... View the full answer