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Determine the issuance price of the bonds

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Question - Computing the Price of a Bond Issued at a Discount - Trew Company plans to issue bonds with a face value of $907,000 and a coupon rate of 6 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 rate of Interest of 7.5 percent?

Reference no: EM133088223

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