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Compute the price investors should offer

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Question - Ecological water filtration, Inc. is going to issue USD 400,000 face value of 10 percent, 15 year bonds. The bonds are dated 2009 June, call for semiannual interest payments, and mature on 2024 June 30. Compute the price investors should offer if they seek a yield of 8 percent on these bonds. Also, compute the first six month's interest, assuming the bonds are issued at this price. Use the interest method and calculate all amounts to the nearest dollar.

Reference no: EM132031415

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