Calculate the issue price
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Calculate the issue price

Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Req 3a
Req 3b
If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate
factor(s) from the tables provided. Enter your answers in dollars not in millions (i.e., $5.5 million should be entered as
5,500,000). Round your final answers to the nearest whole dollar.)
Bond Characteristics
Face amount
Interest payment
Number of periods
Market interest rate
Issue price
$
$
Amount
39,000,000
1,365,000
20
4.0%
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