How do calculate the selling price for each bond issue

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Reference no: EM132838246

Issue PriceThe following terms relate to independent bond issues:

540 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
540 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
870 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
2,190 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments

Required:

Problem 1: Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar.

Reference no: EM132838246

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