Computing Bond Issue Price Bushman, Inc., issues $250,000 of 9% bonds that pay interest semiannually...
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Accounting
Computing Bond Issue Price
Bushman, Inc., issues $250,000 of 9% bonds that pay interest semiannually and mature in 10 years. Compute the bond issue price assuming that the bonds market rate is: a. 8% per year compounded semiannually. Round your answers to the nearest dollar.
Present value of principal repayment
Answer
Present value of interest payments
Answer
Selling price of bonds
Answer
b. 10% per year compounded semiannually. Round your answers to the nearest dollar.
Present value of principal repayment
Answer
Present value of interest payments
Answer
Selling price of bonds
Answer
Answer & Explanation
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