Appendix-Calculate Issuance Price
Suppose that a company issues the following bonds at different times. Interest on the bonds is paid annually.
$80,000 of 6%, 10-year bonds when themarket rate of interestis 7%
$60,000 of 8%, 6-year bonds when the market rate of interest is 6%
$120,000 of 10%, 5-year bonds when the market rate of interest is 8%
Required:
Calculate the issuance price for each bond.