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What is the issue price of the bonds

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Question 1: Haste Enterprises issues 15-year, $1,000,000 bonds that pay semiannual interest of $50,000. If the effective annual rate of interest is 12%, what is the issue price of the bonds? Some relevant and irrelevant present value factors:

  1. PV of ordinary annuity of $1: n = 15; i = 12% is 6.81086
  2. PV of $1: n = 15; i = 12% is 0.18270
  3. PV of ordinary annuity of $1: n = 30; i = 6.0% is 13.76483
  4. PV of $1: n = 30; i = 6.0% is 0.17411

Reference no: EM132494886

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