PDA

View Full Version : Issues of bond with a par value


iam2blessed4u
Nov 1, 2009, 07:57 PM
On January 1, a company issues bondsss with a par vaule of $300,000. The bonds maure in 5 yrs, and pay 8% annual interst, payable each June 30 amd December 31. On the issue date, the marke rate of interest for the bonds is 10%. Compute the price on their issance date:

Present value of an annuity for 10% periods at 4% 8.110
Present value of an annuity for 10% periods at 5% 7.7217
Present value of 1 for 10 periods at 4% 0.6756
Present value 1 for 10 peroids at 5%

morgaine300
Nov 2, 2009, 12:15 AM
Please see the guidelines for posting homework problems:
https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html