ALG company issues bonds dated january 1, 2015 that have a $100,000 par value; mature...
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ALG company issues bonds dated january 1, 2015 that have a $100,000 par value; mature in 2 years, and pay 6% interest semiannually on june 30 and December 31. The bonds mature on December 31, 2016. 1) ALG issues the bonds on January 1, 2015 when the market rate was 10% -What is the amount of each semi-annual interest payment? -How many interest payments will be made over the bond's life? -Compute the price of the bonds on their issue date.
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