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Determine the issuance price of the bonds

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Question - Waterhouse Company plans to issue bonds with a face value of $500,000 and a coupon rate of 10 percent. The bonds will mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds are sold on January 1 of this year. Determine the issuance price of the bonds assuming an annual market interest rate of 8 percent.

Reference no: EM131640357

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