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

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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


Nov 19th, 2015

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

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

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Nov 19th, 2015

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