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Part 2 On October 1, ET Inc. has available for issue a $324,000 bond due in eight years. Interest at the rate of 5.5% is to be paid semiannually. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the fina answers to 2 decimal places.) a. b. C. Market Interest Issue Price of the Bonds Rate 4.5% 5.5% 6.25% 4

Part 2 On October 1, ET Inc. has available for issue a $324,000 bond due in eight years. Interest at the rate of 5.5% is to be paid semiannually. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the fina answers to 2 decimal places.) a. b. C. Market Interest Issue Price of the Bonds Rate 4.5% 5.5% 6.25% 4

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please answer both interlinked parts

Part 2 On October 1, ET Inc. has available for issue a $324,000 bond due in eight years. Interest at the rate of 5.5% is to be paid semiannually. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. b. C. Market Interest Issue Price of the Bonds Rate 4.5% 5.5% 6.25% K
Transcribed Image Text:Part 2 On October 1, ET Inc. has available for issue a $324,000 bond due in eight years. Interest at the rate of 5.5% is to be paid semiannually. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to 2 decimal places.) a. b. C. Market Interest Issue Price of the Bonds Rate 4.5% 5.5% 6.25% K
Problem 14-5A Calculating the issue price using business calculator PV function LO4 Part 1 On April 1, 2020, ET Inc. has available for issue $391,000 bonds due in four years. Interest at the rate of 5.5% is to be paid quarterly. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) a. b. C. Market Interest Issue Price of the Bonds Rate 6.5% 5.5% 4.5%
Transcribed Image Text:Problem 14-5A Calculating the issue price using business calculator PV function LO4 Part 1 On April 1, 2020, ET Inc. has available for issue $391,000 bonds due in four years. Interest at the rate of 5.5% is to be paid quarterly. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) a. b. C. Market Interest Issue Price of the Bonds Rate 6.5% 5.5% 4.5%
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