Determining the issue price of a bond

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Question - Determining the Issue Price of a Bond - On January 1, 2021, R & B Inc. issues $500,000 of 10-year, 4% bonds to yield a market interest rate of 5%. Interest is paid semi-annually on January 1 and July 1.

Using present value concepts, calculate the issue price of the bonds. Round all calculations to the nearest dollar. Recall that, when using a financial calculator, cash outflows should be reflected with a negative sign.

Reference no: EM132905754

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