Valuing Bonds Using Present Value

Use the present value tables 1 and 2 to calculate the issue price of a $600,000 bond issue in each of the following independent cases. Assume interest is paid semiannually.

a. A 10-year, 8 percent bond issue; the market interest rate is 10 percent. $

b. A 10-year, 8 percent bond issue; the market interest rate is 6 percent. $

c. A 10-year, 10 percent bond issue; the market interest rate is 8 percent. $

d. A 20-year, 10 percent bond issue; the market interest rate is 12 percent. $

e. A 20-year, 10 percent bond issue; the market interest rate is 6 percent.