Question: 1. Ultimate Butter Popcorn issues 6%, 10-year bonds with a face amount of $50,000. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually. At what price will the bonds issue?
2. Ultimate Butter Popcorn issues 6%, 15-year bonds with a face amount of $50,000. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid semiannually. At what price will the bonds issue?