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Ultimate Butter Popcorn issues 6%, 10-year bonds with a face amount of $45,000. The market interest rate for bonds of similar

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Answer #1

Answer :

Price of Bond = Present Value of Interest + Present Value of Principal

= (1350 * PVIFA 3.5%, 20 years )  + (45000 * PVIF3.5%, 20 years )

= 19186.74 + 22612.5

= 41800

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