Using the information from BE14- 9, determine the issue price of the bonds, assuming that the market rate of interest is 4%.
In BE14-9
Jorge Corporation issued $ 100,000 par value, 6%, four- year bonds ( i. e., there were 100 $ 1,000 par value bonds in the issue). Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period, on July 1. Determine the issue price of the bonds if the market rate of interest is 8%.