Problem:
Richmond Company issues bonds with a face value of $500,000 that pay 6% interest semiannually and mature in 10 years. Calculate the price of the bond if the market interest rate is 6%.
- N (period of time)
- I (Interest)
- PV (Present Value
- FV (Future Value)
- PMT (Annuity)
Required:
1. Calculate the price of the bond if the market interest rate is 4%.