A 20-year bond issue of 5, 800 000 and bearing interest at 66% payable annually is...
A 20-year bond issue of 5, 800 000 and bearing interest at 66% payable annually is sold to yield
6.3% compounded semi- annually.
What is the issue price of the bonds?
The purchase price of the bond is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Homework Answers
The purchase price of the bonds is:-
=PV(rate,nper,pmt,fv)
=PV(6.3%/2,20*2,6%/2*800000,800000)
=772922.73
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A 20-year bond issue of 5, 800 000 and bearing interest at 66%
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