Calculate the issuance price of these bonds

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Question - Patterson Company issued 30-year bonds on June 30. The face value of the bonds was $750,000. The stated interest rate on the bonds was 6%. The market rate of interest at the time of issuance was 4%. Patterson also issued another set of bonds on August 31. These bonds were 20-year bonds and had a face value of $556,000. The stated rate of interest on these bonds was 5%. The market rate of interest at the time these bonds were issued was 8%. Both sets of bonds pay interest semiannually.

Use the Present value of a single sum ($1) and Present value of an annuity ($1).

Required - Calculate the issuance price of these bonds. Round your final answers to the nearest dollar.

June 30 Bonds

August 31 Bonds

Reference no: EM132887634

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