Question:
Compute the market value of each of the following bond issues
1. 10% bonds of $1,000,000 sold on bond issue date; 10-year life; interest payable semiannually; effective rate, 12%.
2. 9% bonds of $200,000 sold on bond issue date; 5-year life; interest payable semiannually; effective rate, 8%.
3. 8% bonds of $150,000 sold 30 months after bond issue date; 15-year life; interest payable semiannually; effective rate, 10%.