What is the bond's issue (selling) price?

Anonymous
timer Asked: Nov 19th, 2015
account_balance_wallet $5

Question Description

Marwick Corporation issues 29%, 5 year bonds with a par value of $1,210,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 27%. What is the bond's issue (selling) price, assuming the Present Value of $1 factor for 13.5% and 10 semi-annual periods is 0.2819 and the Present Value of an Annuity factor for the same rate and period is 5.3195?

A.) $999,244

B.) $1,274,405

C.) $2,143,306

D.) $276,694

E.) $1,210,000


Tutor Answer

anusha_reddy
School: University of Virginia

Thank you for the opportunity to help you with your question!

The answer for your question is option (b) - $1,274,405

Please let me know if you need any clarification. I'm always happy to answer your questions.

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Review

Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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