Problem

Computing the Issue Price of a BondGMAC Corporation issued a $100.000 bond that matures in...

Computing the Issue Price of a Bond

GMAC Corporation issued a $100.000 bond that matures in five years. The bond has a stated interest rate of 6 percent. On January 1, 2011. when the bond was issued, the market rate was 8 percent. The bond pays interest twice per year, on June 30 and December 31. At what price was the bond issued?

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