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Estimate the issue price of the bonds

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Question - On December 31, 2019, Repsol Corp issued $1,400,000, 9%, 5-year bonds. Interest is payable semiannually on June 30 and December 31. The corporation uses the effective interest method of amortizing bond premium or discount. Using a financial calculator or excel, estimate the issue price of the bonds under the following three assumptions:

(1) Market Rate is 9%

(2) Market Rate is 8%

Reference no: EM132599189

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