Compute the total price paid by XYZ Corporation

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Problem - XYZ Corporation purchased 10, $1,000, 8% bonds of Jackson Corporation when the market rate of interest was 10%. Interest is paid semiannually on the bonds, and the bonds mature in 6 years.

Required - Compute the total price paid by XYZ Corporation for the bonds showing your calculation for the present value of the principal and the present value of the interest payments.

Reference no: EM132454927

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