Compute the selling price of 12.00%, 15-year bonds with a par value of $420,000 and semiannual interest payments. The annual market rate for these bonds is 10.00%. Use present value Table B.1 and Table B.3 in Appendix B. Note: Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your other final answers to nearest whole dollar amount. Cash Flow $420,000 par (maturity) value $25,200 interest payment Price of Bond Table Value Present Value

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.