Will the bonds issue price be greater or less

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Problem 1: Walter Company issues $750,000 (FACE) of 12% bonds that pay interest semiannually and mature in 10 years. Will the bonds' issue price be greater than or less than the $750,000 if we assume that the market interest rate for similar bonds is:

a. 10% per year compounded semiannually

b. 14% per year compounded semiannually

Reference no: EM132825317

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