this is all the question states. not sure when the bonds were issued. possibly Jan...
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this is all the question states. not sure when the bonds were issued. possibly Jan 1?
E10-3 (Static) Computing Issue Prices of Bonds Sold at Par, at a Discount, and at a Premium LO10-2, 104,105 LaTanya Corporation is planning to issue bonds with a face value of $100,000 and a coupon rate of 8 percent. The bonds mature in seven years. Interest is paid annually on December 31. All of the bonds will be sold on January 1 of this year. (FV of $1,PV of $1, FVA of $1, and PVA of $11 Note: Use appropriate factor(s) from the tables provided. Required: Compute the issue (sales) price on January 1 of this year for each of the following independent cases: a. Case A : Market interest rate (annual): 8 percent. b. Case B: Market interest rate (annual): 6 percent. c. Case C: Market interest rate (annual): 9 percent
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