Boston company issues bonds with a par value of 160000 on

Reference no: EM13598756

Boston Company issues bonds with a par value of $160,000 on their stated issue date. The bonds mature in six years and pay 8% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 6%.

Requirement 1: What is the amount of each semiannual interest payment for these bonds? answer 6,400

Requirement 2: How many semiannual interest payments will be made on these bonds over their life? answer 12

Requirement 3: answer "premium"
Use the interest rates given to determine whether the bonds are issued at

Requirement 4: Compute the price of the bonds as of their issue date.

Cash Flow Amount Table Value Present Value
Par (maturity) value $ $
Interest (annuity)
Price of bonds

Reference no: EM13598756

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