/hat is the issue price of the bond? (FV ples provided.)
Chapter1: Financial Statements And Business Decisions
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Eugene issues a bond with a coupon rate of 12%, face amount of $40,000, and is due in 8 years. Interest payments are made semi-annually. The effective
rate for this type of bond is 14%. What is the issue price of the bond? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use
appropriate factor(s) from the tables provided.)
Multiple Choice
$53,549.
$60,269.
$40,000.
$36,221.
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