Posted: March 6th, 2014
Pear Corporation is issuing $600,000 of 8%, 5-year bonds when potential bond investors want a return…
Pear Corporation is issuing $600,000 of 8%, 5-year bonds when potential bond investors want a return of 10%. Interest is payable semiannually.”>
Pear Corporation is issuing $600,000 of 8%, 5-year bonds when potential bond investors want a return of 10%. Interest is payable semiannually.
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The present value of 1 factors are 4%, .67556 and 5%, .61391. The present value of an annuity factors are 4%, 8.1109 and 5%, 7.72173.
Instructions
Compute the market price (present value) of the bonds.
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