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Issue Price The following terms relate to independent bond issues: 400 bonds; $1,000 face value; 8%...

Issue Price The following terms relate to independent bond issues: 400 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments 400 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments 820 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments 2,150 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments Use the appropriate present value table: PV of $1 and PV of Annuity of $1 Required: Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar..

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Answer #1
Sr. No. No. of bonds Face value coupon rate No. of years interest payment period Selling price of 1 bond formula Selling price of 1 bond Selling price of total bonds
a 400 1000 8% 5 annually 80*3.7908+1000*0.6209 924.164 369,665.6
b 400 1000 8% 5 semiannually 80*7.7217+1000*0.6139 1231.636 493,855.6
c 820 1000 8% 10 semiannually 80*12.4622+1000*0.3769 1373.876 1,126,580.78
d 2150 500 12% 15 semiannually 60*15.3724+500*0.2313 1037.994 2,231,687.1

Present value factor of 10%
Year Factor Annuity factor
1 0.9090909091 0.9090909091
2 0.826446281 1.73553719
3 0.7513148009 2.486851991
4 0.6830134554 3.169865446
5 0.6209213231 3.790786769
6 0.5644739301 4.355260699
7 0.5131581182 4.868418818
8 0.4665073802 5.334926198
9 0.4240976184 5.759023816
10 0.3855432894 6.144567106
11 0.3504938995 6.495061005
12 0.3186308177 6.813691823
13 0.2896643797 7.103356203
14 0.2633312543 7.366687457
15 0.2393920494 7.606079506

Present value factor of 5%
Year Factor Annuity factor
1 0.9523809524 0.9523809524
2 0.9070294785 1.859410431
3 0.8638375985 2.723248029
4 0.8227024748 3.545950504
5 0.7835261665 4.329476671
6 0.7462153966 5.075692067
7 0.7106813301 5.786373397
8 0.676839362 6.463212759
9 0.6446089162 7.107821676
10 0.6139132535 7.721734929
11 0.5846792891 8.306414218
12 0.5568374182 8.863251636
13 0.5303213506 9.393572987
14 0.505067953 9.89864094
15 0.4810170981 10.37965804
16 0.458111522 10.83776956
17 0.4362966876 11.27406625
18 0.4155206549 11.6895869
19 0.395733957 12.08532086
20 0.3768894829 12.46221034
21 0.3589423646 12.82115271
22 0.3418498711 13.16300258
23 0.3255713058 13.48857388
24 0.3100679103 13.79864179
25 0.2953027717 14.09394457
26 0.281240735 14.3751853
27 0.267848319 14.64303362
28 0.2550936371 14.89812726
29 0.2429463211 15.14107358
30 0.2313774487 15.37245103
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